Is Quest Capital overvalued or undervalued?

As of 10 October 2025, Quest Capital's valuation grade has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently assessed as undervalued, particularly when considering its price-to-earnings (PE) ratio of 16.49, a price-to-book value of 0.25, and an EV to EBITDA ratio of 11.83. These metrics suggest that the stock is trading at a discount relative to its earnings and book value.
In comparison to peers, Quest Capital's PE ratio is significantly lower than that of Bajaj Finance, which stands at 36.56, and it also compares favorably against Life Insurance, which has a PE of 11.65. The PEG ratio of Quest Capital is notably 0.00, indicating potential for growth at a low cost. Despite recent underperformance, with a year-to-date return of -33.16% compared to the Sensex's 5.58%, the long-term performance remains strong, with a 5-year return of 371.53%. This suggests that while the short-term outlook may be challenging, the fundamental valuation remains attractive.