Is Purple Finance overvalued or undervalued?

Oct 24 2025 08:13 AM IST
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As of October 23, 2025, Purple Finance is considered risky and overvalued, with a PE ratio of -17.19 and a year-to-date return of -42.75%, significantly underperforming compared to peers like Bajaj Finance and Life Insurance.
As of 23 October 2025, the valuation grade for Purple Finance has moved from very expensive to risky, indicating a significant shift in its perceived value. Based on the analysis, the company is currently overvalued. Key ratios reveal a PE ratio of -17.19, an EV to EBITDA of -32.24, and a ROE of -15.84%, which highlight the company's struggles in profitability and valuation metrics.

In comparison to its peers, Purple Finance's valuation is starkly lower than that of Bajaj Finance, which has a PE ratio of 39.07, and Life Insurance, with a PE of 11.68. This stark contrast underscores the challenges faced by Purple Finance in the current market landscape. Additionally, the company's stock has underperformed significantly year-to-date, with a return of -42.75% compared to a positive 8.21% return from the Sensex, reinforcing the notion of its overvaluation amidst a broader market recovery.
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