Is Photon Capital overvalued or undervalued?
As of September 3, 2025, Photon Capital is considered overvalued with a risky valuation grade, reflected by a PE ratio of -16.65, an EV to EBITDA of -12.98, and a ROE of -24.00%, especially when compared to peers like Bajaj Finance and Life Insurance, despite a strong year-to-date stock return of 18.05%.
As of 3 September 2025, Photon Capital's valuation grade has moved from expensive to risky, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios reveal a PE ratio of -16.65, an EV to EBITDA of -12.98, and a ROE of -24.00%, all of which suggest underlying financial challenges.In comparison to its peers, Photon Capital's valuation metrics stand out unfavorably. For instance, Bajaj Finance has a PE ratio of 32.03, while Life Insurance boasts a more attractive EV to EBITDA of 8.77. These comparisons highlight Photon Capital's struggles relative to its industry, reinforcing the notion of overvaluation. Additionally, despite a strong year-to-date stock return of 18.05% compared to the Sensex's 3.11%, the fundamental ratios indicate that the stock may not be justified at its current price of 110.00.
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