Is Photon Capital overvalued or undervalued?

Sep 21 2025 08:03 AM IST
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As of September 19, 2025, Photon Capital is considered overvalued and risky, with poor financial ratios including a PE ratio of -15.71 and an ROE of -24.00%, despite a strong annual return of 14.70%.
As of 19 September 2025, the valuation grade for Photon Capital has moved from expensive to risky, indicating a significant shift in its perceived value. The company is currently assessed as overvalued. Key ratios reveal a PE ratio of -15.71, an EV to EBIT of -12.04, and a ROE of -24.00%, all of which suggest underlying financial challenges.

In comparison to its peers, Photon Capital's valuation metrics are starkly lower. For instance, Bajaj Finance has a PE ratio of 35.51, while Life Insurance boasts an EV to EBITDA of 9.07, highlighting the disparity in valuation. Additionally, Photon Capital's negative PEG ratio of 0.00 further underscores its struggles relative to the industry. Despite a strong performance over the past year with a return of 14.70% compared to a -0.67% return for the Sensex, the company's current financial ratios indicate it is not positioned favorably in the market.
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