Is Photon Capital overvalued or undervalued?

As of 23 October 2025, Photon Capital's valuation grade has moved from very expensive to risky, indicating a significant shift in its financial outlook. The company is currently considered overvalued. Key ratios reveal a troubling picture, with a PE ratio of -29.24, an EV to EBIT of 17.40, and a Price to Book Value of 0.21, suggesting that the market is pricing in significant risks associated with its earnings and capital structure.
In comparison to its peers, Photon Capital's valuation metrics stand out negatively. For instance, Bajaj Finance has a PE ratio of 39.07 and an EV to EBITDA of 20.55, while Life Insurance boasts a much more attractive PE ratio of 11.68 and an EV to EBITDA of 9.11. These comparisons highlight that Photon Capital is not only underperforming relative to its peers but also carries a higher risk profile. Despite a strong recent performance against the Sensex, with a year-to-date return of 14.01% compared to the Sensex's 8.21%, the underlying financial metrics suggest that investors should approach Photon Capital with caution.