Is Quest Capital overvalued or undervalued?

As of 9 October 2025, the valuation grade for Quest Capital has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently assessed as undervalued, particularly when considering its key ratios such as a PE Ratio of 16.26, an EV to EBITDA of 11.66, and a Price to Book Value of just 0.25. These figures suggest that the stock is trading at a discount compared to its earnings and asset value.
In comparison to its peers, Quest Capital's valuation metrics stand out favorably. For instance, Bajaj Finance is deemed very expensive with a PE Ratio of 36.57, while Life Insurance is very attractive with a PE Ratio of 11.62. This positions Quest Capital as a more appealing investment option within the capital markets sector. Despite recent underperformance against the Sensex, with a year-to-date return of -34.09% compared to the Sensex's 5.16%, the long-term perspective shows a remarkable growth of 364.95% over five years, reinforcing its potential as a strong investment opportunity.