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 deterioration in its valuation outlook. The company is currently assessed as overvalued. Key ratios reveal a PE Ratio of -10.36, an EV to EBITDA of -4.89, and a Price to Book Value of 0.83, which suggest that the company is struggling financially.
In comparison with peers, Prism Finance's valuation metrics starkly contrast with Bajaj Finance's PE Ratio of 38.21 and Life Insurance's PE Ratio of 11.49, both of which indicate a healthier financial standing. Additionally, the company's recent performance has been lackluster, with a year-to-date return of -35.68%, compared to a 7.44% gain in the Sensex, further reinforcing the notion that Prism Finance is overvalued in the current market environment.