Is Photon Capital overvalued or undervalued?

As of 29 August 2025, the valuation grade for Photon Capital has moved from risky to expensive, indicating a shift in perception regarding its market standing. The company is currently deemed overvalued based on its financial metrics. Notably, the PE ratio stands at -15.89, while the EV to EBITDA ratio is also at -12.22, reflecting significant negative earnings. Additionally, the Price to Book Value is 1.92, suggesting that the stock is trading at a premium relative to its book value.
When compared to peers, Photon Capital's valuation appears unfavorable. For instance, Bajaj Finance has a PE ratio of 31.3, and Bajaj Finserv stands at 32.09, both indicating a robust earnings potential compared to Photon Capital. In contrast, Life Insurance, which is categorized as very attractive, has a PE ratio of 11.08, further highlighting Photon Capital's overvaluation. Although Photon Capital has shown strong returns over the past year at 35.48%, this performance does not mitigate the concerns raised by its negative earnings ratios and overall valuation compared to its peers.