Is Real Touch Fin overvalued or undervalued?

As of 23 June 2025, the valuation grade for Real Touch Fin has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued based on its current metrics. Key ratios include a PE ratio of 14.80, an EV to EBITDA of 11.53, and a PEG ratio of 0.20, which suggests strong growth potential relative to its price.
In comparison to its peers, Real Touch Fin's PE ratio is more favorable than Life Insurance's PE of 12.3, while it remains significantly lower than Bajaj Finance's PE of 34.19. This positions Real Touch Fin competitively within the Non-Banking Financial Company (NBFC) sector. Notably, despite a recent decline in stock performance compared to the Sensex, with a year-to-date return of -34.84% versus the Sensex's 4.81%, the long-term outlook remains robust, as evidenced by a 3-year return of 175.69%.