Is Paisalo Digital overvalued or undervalued?

As of 17 November 2025, the valuation grade for Paisalo Digital has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently assessed as undervalued, particularly when compared to its peers in the Non-Banking Financial Company (NBFC) sector. Key ratios include a PE Ratio of 15.02, an EV to EBIT of 10.70, and a ROE of 12.42%, which suggest a solid financial performance relative to its valuation.
In comparison to peers, Paisalo Digital's PE Ratio of 15.02 is notably lower than that of Bajaj Finance, which stands at 34.85, and Life Insurance at 11.33, both of which highlight the attractive valuation of Paisalo Digital. Additionally, its EV to EBITDA ratio of 10.57 is competitive against the industry average. Despite recent underperformance in stock returns compared to the Sensex, with a year-to-date decline of 31.41% versus an 8.72% gain in the Sensex, the fundamental metrics suggest that Paisalo Digital presents a compelling investment opportunity at its current price of 34.16.