Is Regency Fincorp overvalued or undervalued?

As of 1 July 2025, the valuation grade for Regency Fincorp has moved from very expensive to expensive. The company is currently assessed as overvalued. Key ratios include a PE ratio of 36.71, an EV to EBITDA of 12.12, and a PEG ratio of 0.80, which indicates that while growth expectations may be favorable, the current price does not align well with the earnings potential.
In comparison to peers, Regency Fincorp's PE ratio is significantly higher than that of Life Insurance at 12.71 and IRFC at 28.43, both of which are considered fairly valued. Additionally, Bajaj Finserv, which is also expensive, has a PE ratio of 36.92, suggesting that Regency Fincorp is not alone in its high valuation but still stands out as overvalued relative to its peers. The recent stock performance shows a decline of 30.78% year-to-date, contrasting sharply with the Sensex's gain of 7.11%, further reinforcing the overvaluation narrative.