Is One Mobikwik overvalued or undervalued?

As of 14 August 2025, the valuation grade for One Mobikwik has moved from risky to very expensive, indicating a significant deterioration in its perceived value. The company is currently overvalued, as evidenced by its negative PE ratio of -14.40, an EV to EBIT of -9.59, and a ROE of -20.27%. These ratios suggest that the company is struggling financially and is not generating positive returns for its shareholders.
In comparison to its peers, One Mobikwik's valuation metrics are starkly unfavorable. For instance, Life Insurance has a PE ratio of 11.53 and an EV to EBITDA of 8.97, both indicating a much healthier financial position. Similarly, Bajaj Finance, while also classified as very expensive, has a PE ratio of 30.73, which is significantly higher than that of One Mobikwik. The recent stock performance further emphasizes this valuation story, as One Mobikwik has seen a year-to-date decline of 61.59%, contrasting sharply with the Sensex's gain of 3.15% during the same period.