Is One Mobikwik overvalued or undervalued?

As of 22 August 2025, the valuation grade for One Mobikwik has moved from risky to very expensive. The company is currently overvalued, as indicated by its negative PE ratio of -14.56, a price-to-book value of 2.95, and an EV to EBITDA ratio of -10.93. These ratios highlight significant financial distress and an inability to generate positive earnings.
In comparison to its peers, One Mobikwik stands out negatively against companies like Life Insurance, which has a PE ratio of 11.55 and an EV to EBITDA of 8.99, and Bajaj Finance, with a PE ratio of 31.91 and an EV to EBITDA of 18.05. The stark contrast in valuation metrics suggests that One Mobikwik is not only overvalued but also struggling significantly relative to its industry peers. Furthermore, the company's recent stock performance shows a year-to-date decline of 60.99%, contrasting sharply with the Sensex's positive return of 4.05%, reinforcing the notion of its overvaluation.