Is Prism Finance overvalued or undervalued?

As of 17 October 2025, the valuation grade for Prism Finance has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of -10.36, an EV to EBITDA of -4.89, and a Price to Book Value of 0.83. These ratios suggest that the company is struggling financially, as negative PE and EV ratios indicate losses rather than profitability.
When compared to its peers, Prism Finance stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 38.21, while Life Insurance boasts a much more attractive PE of 11.49. Additionally, Prism's ROCE of -11.53% and ROE of -8.04% further highlight its underperformance relative to the industry. Despite a slight positive return of 4.11% over the past year compared to the Sensex's 3.64%, the overall financial metrics suggest that Prism Finance is not positioned well in the current market landscape.