Is One Mobikwik overvalued or undervalued?

As of 28 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 is currently considered overvalued. Key ratios include a PE ratio of -14.13, an EV to EBITDA of -10.44, and a ROE of -20.27%. These negative figures suggest that the company is struggling to generate profits and is not effectively utilizing its equity.
In comparison with peers, One Mobikwik's valuation metrics are starkly unfavorable. For instance, Life Insurance, rated very attractive, has a PE ratio of 11.27 and an EV to EBITDA of 8.74, showcasing a solid performance relative to One Mobikwik. Other peers like Bajaj Finance and Bajaj Finserv are also significantly more valued, with PE ratios of 31.28 and 32.13, respectively. The recent performance of One Mobikwik, with a year-to-date return of -62.17%, starkly contrasts with the Sensex's positive return of 2.48%, further reinforcing the notion that the stock is overvalued in its current state.