Is One Mobikwik overvalued or undervalued?

As of 29 August 2025, One Mobikwik's valuation grade has moved from risky to very expensive, indicating a significant deterioration in its investment appeal. The company appears overvalued based on its current financial metrics, with a PE ratio of -14.10, an EV to EBITDA of -10.40, and a ROE of -20.27%. These ratios suggest that the company is struggling to generate positive earnings and returns for shareholders.
In comparison to its peers, One Mobikwik stands out unfavorably; 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, both indicating more favorable valuations. The stark contrast in these ratios reinforces the conclusion that One Mobikwik is overvalued in the current market context. Furthermore, the company's stock has significantly underperformed relative to the Sensex, with a year-to-date return of -62.38%, further highlighting its challenging position in the financial technology sector.