Is Real Touch Fin overvalued or undervalued?

As of 1 July 2025, the valuation grade for Real Touch Fin has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a PE ratio of 13.78, an EV to EBITDA of 11.30, and a PEG ratio of 0.18, which suggests strong growth potential relative to its current price.
In comparison to its peers, Real Touch Fin's valuation metrics stand out; for instance, Life Insurance has a PE ratio of 12.71 and EV to EBITDA of 10.03, while Bajaj Finance is deemed very expensive with a PE of 34.98. Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -39.33% compared to the Sensex's 7.11%, the company's strong ratios and improved valuation grade suggest it presents a compelling investment opportunity.