Is Photon Capital overvalued or undervalued?

Sep 13 2025 08:03 AM IST
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As of September 12, 2025, Photon Capital is considered overvalued with a PE ratio of -16.54 and an EV to EBITDA of -12.87, making it a less favorable investment compared to peers like Bajaj Finance and Life Insurance, despite a strong year-to-date return of 17.25%.
As of 12 September 2025, the valuation grade for Photon Capital has moved from risky to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of -16.54, an EV to EBITDA of -12.87, and a ROE of -24.00%.

In comparison to its peers, Bajaj Finance has a PE ratio of 35.82, while Life Insurance boasts a more attractive PE of 11.36. These comparisons highlight Photon Capital's unfavorable valuation relative to its industry. Despite a strong year-to-date return of 17.25% compared to the Sensex's 4.82%, the company's negative earnings ratios and high valuation suggest it is not a favorable investment at this time.
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