Is Photon Capital overvalued or undervalued?
As of September 19, 2025, Photon Capital is considered overvalued and risky due to its negative PE ratio of -15.71 and poor operational efficiency, especially when compared to peers like Bajaj Finance and Life Insurance, despite a year-to-date return of 11.40%.
As of 19 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 based on its negative PE ratio of -15.71, an EV to EBIT of -12.04, and a ROE of -24.00%. These ratios suggest that Photon Capital is struggling to generate profits and is facing challenges in its operational efficiency.When compared to its peers, Photon Capital's valuation stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 35.51, while Life Insurance boasts a more attractive PE of 11.64. This stark contrast highlights Photon Capital's struggles relative to its competitors in the diversified commercial services sector. Additionally, despite a year-to-date return of 11.40%, which outperformed the Sensex's 5.74%, the overall financial metrics suggest that Photon Capital remains overvalued in the current market environment.
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