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 market perception. 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 ratios suggest that the stock is trading at a discount compared to its earnings and book value.
In comparison to its peers, Quest Capital's valuation metrics stand out, especially against Bajaj Finance, which has a PE ratio of 36.56 and is deemed very expensive, and Life Insurance, which is rated very attractive with a PE of 11.65. This peer comparison reinforces the notion that Quest Capital is undervalued within its industry. Additionally, while the company has experienced a significant decline in stock performance year-to-date, down 33.16% compared to a 5.58% rise in the Sensex, its long-term performance over five years shows a remarkable increase of 371.53%, suggesting potential for recovery and growth.