Is Power Fin.Corpn. overvalued or undervalued?

As of 3 November 2025, the valuation grade for Power Fin. Corpn. has moved from attractive to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a PE ratio of 5.47, an EV to EBITDA of 10.22, and a PEG ratio of 0.32, which suggest that while the company has a low price relative to earnings, its valuation metrics are not compelling when compared to peers.
In the peer comparison, Bajaj Finance is categorized as very expensive with a PE ratio of 37.15, while Life Insurance is noted as very attractive with an EV to EBITDA of 9.34. This highlights that Power Fin. Corpn.'s valuation does not present a favorable investment opportunity relative to its peers in the finance industry. Additionally, the company's stock has underperformed against the Sensex over the past year, with a return of -12.11% compared to the Sensex's 5.34%, reinforcing the notion that it is currently overvalued.