Is Prism Finance overvalued or undervalued?

As of 15 October 2025, Prism Finance's valuation grade has moved from very expensive to risky, indicating a significant shift in its market perception. The company appears to be undervalued, particularly when considering its negative PE ratio of -10.36 and EV to EBIT of -4.80, which suggest that the market is pricing in substantial concerns about its profitability. Additionally, the Price to Book Value stands at 0.83, further supporting the notion that the stock may be undervalued relative to its assets.
In comparison with its peers, Prism Finance's ratios starkly contrast with those of Bajaj Finance, which has a PE ratio of 37.84, and Life Insurance, which boasts a PE of 11.69. This disparity highlights the potential for Prism Finance to be undervalued within its sector. Furthermore, the company's year-to-date return of -35.68% compared to the Sensex's positive return of 5.72% reinforces the narrative of undervaluation, suggesting that the stock may be presenting a buying opportunity for investors looking for value in the NBFC space.