Is Purple Finance overvalued or undervalued?

Oct 13 2025 08:12 AM IST
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As of October 10, 2025, Purple Finance is considered very expensive and overvalued, with unfavorable key ratios and a year-to-date return of -48.26%, significantly underperforming compared to its peers and the Sensex.
As of 10 October 2025, the valuation grade for Purple Finance has moved from risky to very expensive. This indicates a significant shift in perception, suggesting that the company is currently overvalued. The key ratios highlight this concern: the PE ratio stands at -11.75, the EV to EBITDA ratio is -18.36, and the ROE is a troubling -20.95%.

In comparison to its peers, Purple Finance's valuation metrics are starkly unfavorable. For instance, Bajaj Finance has a PE ratio of 36.56 and an EV to EBITDA of 19.67, while Life Insurance boasts a PE of 11.65 and an EV to EBITDA of 9.08, both reflecting much healthier valuations. Additionally, the company's stock has underperformed significantly against the Sensex, with a year-to-date return of -48.26% compared to the Sensex's 5.58%. Overall, these factors strongly indicate that Purple Finance is overvalued in its current market position.
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