Is Photon Capital overvalued or undervalued?

Sep 11 2025 08:03 AM IST
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As of September 10, 2025, Photon Capital is considered overvalued with a PE ratio of -17.41 and an EV to EBITDA ratio of -13.74, despite a year-to-date stock performance of 23.42%, contrasting sharply with peers like Bajaj Finance and Life Insurance.
As of 10 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, with a PE ratio of -17.41, an EV to EBITDA ratio of -13.74, and a ROE of -24.00%. These figures suggest that the company's financial performance is underwhelming compared to its peers.

In comparison to notable peers, Bajaj Finance has a PE ratio of 34.56, while Life Insurance boasts a more attractive PE of 11.4. Photon Capital's negative ratios starkly contrast with these competitors, reinforcing its overvalued status. Despite recent stock performance, where Photon Capital has outperformed the Sensex with a year-to-date return of 23.42% compared to the Sensex's 4.21%, the underlying financial metrics indicate that the company is not positioned favorably in the market.
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