Is Photon Capital overvalued or undervalued?

Oct 18 2025 08:05 AM IST
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As of October 17, 2025, Photon Capital is considered overvalued with a PE ratio of -27.79 and negative profitability metrics, making it less favorable compared to peers like Bajaj Finance and Life Insurance, despite a year-to-date stock performance of 14.29% versus the Sensex's 7.44%.
As of 17 October 2025, Photon Capital's valuation grade has moved from risky to expensive, indicating a shift in perception regarding its market position. The company is currently deemed overvalued, with a PE ratio of -27.79, an EV to EBITDA of -12.49, and a Price to Book Value of 2.14. These ratios suggest significant concerns about profitability and overall financial health, particularly highlighted by a negative ROE of -26.41% and a ROCE of -7.69%.

In comparison to its peers, Photon Capital stands out unfavorably; for instance, Bajaj Finance has a PE ratio of 38.21 and an EV to EBITDA of 20.25, while Life Insurance boasts a more attractive PE of 11.49 and an EV to EBITDA of 8.94. This stark contrast emphasizes Photon Capital's relative overvaluation. Despite recent stock performance outpacing the Sensex, with a year-to-date return of 14.29% compared to the Sensex's 7.44%, the underlying financial metrics suggest that investors should approach Photon Capital with caution.
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