Is Photon Capital overvalued or undervalued?

As of 17 October 2025, the valuation grade for Photon Capital has moved from risky to expensive. The company is currently overvalued, as indicated by its negative PE ratio of -27.79, an EV to EBITDA ratio of -12.49, and a ROE of -26.41%. In comparison to its peers, Bajaj Finance has a PE ratio of 38.21 and Bajaj Finserv stands at 34.94, both categorized as expensive, while Life Insurance is notably attractive with a PE of 11.49.
Despite its recent stock performance, which has outpaced the Sensex with a 1-week return of 18.33% compared to 1.76%, the underlying financial metrics suggest significant concerns regarding profitability and valuation. The negative ratios and high EV metrics indicate that Photon Capital is not only overvalued but also struggling to generate positive returns, reinforcing the need for caution among investors.