Is Power Fin.Corpn. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Power Fin. Corpn. has moved from expensive to attractive, indicating a significant shift in its perceived value. The company is currently considered undervalued based on its strong financial ratios, including a PE ratio of 5.47, a Price to Book Value of 1.13, and a PEG ratio of 0.32, which suggests that the stock is trading at a low price relative to its earnings growth potential.
In comparison to its peers, Power Fin. Corpn. stands out with a much lower PE ratio than Bajaj Finance, which is at 37.23, and also outperforms Bajaj Finserv, which has a PE of 35.03. Additionally, its EV to EBITDA ratio of 10.22 aligns closely with the industry average, while Life Insurance, a peer deemed very attractive, has a higher EV to EBITDA of 9.05. Despite recent underperformance against the Sensex on a year-to-date basis, the company's long-term performance over three and five years shows substantial growth, reinforcing its attractive valuation.