Is Purple Finance overvalued or undervalued?

As of 15 October 2025, the valuation grade for Purple Finance has moved from very expensive to risky, indicating a significant shift in perception. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of -11.62, an EV to EBITDA of -18.20, and a ROE of -20.95%.
In comparison to its peers, Purple Finance's valuation appears attractive relative to Bajaj Finance, which has a PE ratio of 37.84, and Life Insurance, which boasts a PE of 11.69. Despite the company's recent stock performance trailing the Sensex, with a year-to-date return of -48.83% compared to the Sensex's 5.72%, the current valuation suggests potential upside for investors willing to take on the associated risks.