Is Purple Finance overvalued or undervalued?

Oct 19 2025 08:08 AM IST
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As of October 17, 2025, Purple Finance is considered very expensive and overvalued due to negative financial metrics, including a PE ratio of -11.87 and an EV to EBITDA of -18.51, significantly underperforming its peers and the market.
As of 17 October 2025, the valuation grade for Purple Finance has moved from risky to very expensive. The company is currently overvalued, indicated by a PE ratio of -11.87, an EV to EBITDA of -18.51, and a Price to Book Value of 2.49. These ratios suggest significant financial distress, particularly with negative earnings metrics.

In comparison to peers, Bajaj Finance has a PE ratio of 38.21 and an EV to EBITDA of 20.25, while Life Insurance shows a more attractive PE of 11.49 and an EV to EBITDA of 8.94. The stark contrast in these ratios highlights Purple Finance's unfavorable position in the market. Additionally, the company's stock has underperformed significantly over the past year, with a return of -39.82% compared to the Sensex's 3.64%, reinforcing the conclusion that Purple Finance is overvalued.
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