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, with a PE ratio of -14.40, an EV to EBITDA ratio of -10.74, and a ROE of -20.27%. These ratios reflect a concerning financial position, especially given the negative capital employed, which further complicates its valuation.
In comparison to its peers, One Mobikwik stands out unfavorably; for instance, Life Insurance has a PE ratio of 11.53 and an EV to EBITDA of 8.97, both indicating a much healthier valuation. Similarly, Bajaj Finance, despite being categorized as very expensive, maintains a PE ratio of 30.73, which is substantially higher than that of One Mobikwik. The company's recent stock performance has been poor, with a year-to-date return of -61.59%, contrasting sharply with the Sensex's positive return of 3.15%, reinforcing the notion that One Mobikwik is overvalued in the current market context.