Is Paragon Finance overvalued or undervalued?

As of 10 October 2025, the valuation grade for Paragon Finance has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently assessed as overvalued. Key financial ratios include a PE ratio of 22.40, an EV to EBITDA of -21.58, and a Price to Book Value of 0.74, which suggest that the company's valuation metrics are not favorable compared to its peers.
In comparison to its industry peers, Bajaj Finance has a much higher PE ratio of 36.56, while Life Insurance stands out with a more attractive valuation at a PE ratio of 11.65. This stark contrast highlights Paragon Finance's overvaluation in the current market context. Additionally, despite recent stock performance showing a 7.55% return over the past week, the year-to-date return of -22.50% reflects underlying challenges that reinforce the overvalued status of the company.