Is One Mobikwik overvalued or undervalued?

As of 19 August 2025, the valuation grade for One Mobikwik has moved from very expensive to risky, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current financial metrics. Key ratios include a PE ratio of -14.61, an EV to EBITDA of -10.98, and a ROE of -20.27%.
In comparison to its peers, One Mobikwik's valuation stands out unfavorably; for instance, Life Insurance boasts a PE of 11.61 and an EV to EBITDA of 9.04, while Bajaj Finance shows a PE of 32.19 and an EV to EBITDA of 18.15. The stark contrast in these ratios suggests that One Mobikwik is not only overvalued but also struggling to generate positive returns, as evidenced by its negative capital employed and substantial losses. Additionally, the company's stock has underperformed significantly, with a year-to-date return of -61.02% compared to a 4.49% gain in the Sensex, reinforcing the notion of overvaluation.