Is Photon Capital overvalued or undervalued?

As of 12 September 2025, Photon Capital's valuation grade has moved from risky to expensive, indicating a shift in perception regarding its financial health. The company appears to be overvalued based on its current metrics, particularly with a PE ratio of -16.54 and an EV to EBITDA ratio of -12.87, both of which suggest significant underlying issues. Additionally, the ROE stands at -24.00%, further highlighting the challenges the company faces in generating returns for its shareholders.
In comparison to its peers, Photon Capital's valuation metrics are starkly unfavorable. For instance, Bajaj Finance has a PE ratio of 35.82, while Life Insurance boasts a more attractive EV to EBITDA of 8.82. The stark contrast in these ratios underscores Photon Capital's overvaluation relative to its industry peers. Despite a strong performance over the past year with a stock return of 35.73%, this does not mitigate the concerns raised by its negative financial ratios and overall valuation status.