Is One Mobikwik overvalued or undervalued?

As of 29 August 2025, the valuation grade for One Mobikwik has moved from risky to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently deemed overvalued based on its financial metrics. Key ratios include a PE ratio of -14.10, an EV to EBITDA of -10.40, and a ROE of -20.27%.
In comparison to its peers, One Mobikwik's valuation metrics are starkly unfavorable; for instance, Bajaj Finance has a PE ratio of 31.3 and an EV to EBITDA of 17.84, while Life Insurance boasts a PE of 11.08 and an EV to EBITDA of 8.57. These comparisons highlight the substantial overvaluation of One Mobikwik in the fintech sector. Additionally, the company's stock has underperformed significantly, with a year-to-date return of -62.38% compared to a modest 2.14% gain in the Sensex, further reinforcing the overvaluation narrative.