Is Photon Capital overvalued or undervalued?

Sep 22 2025 08:04 AM IST
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As of September 19, 2025, Photon Capital is considered overvalued and risky due to its negative PE ratio of -15.71, negative EV to EBITDA of -12.04, and ROE of -24.00%, despite a strong YTD return of 11.40%.
As of 19 September 2025, the valuation grade for Photon Capital has moved from expensive to risky. The company is currently assessed as overvalued based on its negative PE ratio of -15.71, an EV to EBITDA of -12.04, and a ROE of -24.00%. These figures indicate significant financial distress and a lack of profitability, which raises concerns about its valuation.

In comparison to its peers, Photon Capital's valuation metrics are starkly unfavorable. 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 financial health and market perception. Despite a strong YTD return of 11.40% compared to the Sensex's 5.74%, the underlying financial ratios suggest that Photon Capital is not a sound investment at its current price of 103.80, reinforcing the conclusion that it is overvalued.
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