Is One Mobikwik overvalued or undervalued?

As of 12 September 2025, the valuation grade for One Mobikwik has moved from risky to very expensive, indicating a significant deterioration in its investment appeal. The company is currently overvalued, with a PE ratio of -19.07, an EV to EBITDA ratio of -16.07, and a ROE of -20.27%. These ratios reflect the company's negative earnings and poor return on equity, which are concerning for potential investors.
In comparison to its peers, One Mobikwik stands out unfavorably against Bajaj Finance, which has a PE ratio of 35.82, and Life Insurance, with a PE ratio of 11.36. The stark contrast in valuation metrics highlights the overvaluation of One Mobikwik in the fintech space. Additionally, while the stock has seen a 29.49% return over the past month, this is overshadowed by a year-to-date decline of 49.31%, further reinforcing the notion of overvaluation amidst a challenging market environment.