Is Regency Fincorp overvalued or undervalued?

As of 24 July 2025, Regency Fincorp's valuation grade has moved from fair to expensive, indicating a shift in perception regarding its market price. The company is currently deemed overvalued, with a PE ratio of 38.11, a Price to Book Value of 3.07, and an EV to EBITDA of 12.62. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Regency Fincorp's PE ratio is higher than Bajaj Finance at 35.82 and Bajaj Finserv at 36.6, both categorized as expensive. Additionally, its PEG ratio of 0.84 is relatively favorable, but the overall high valuation metrics indicate that the stock may not offer sufficient upside potential at its current price. Notably, while Regency Fincorp has outperformed the Sensex over the past year with a return of 110.78%, its year-to-date performance shows a decline of 28.14%, further supporting the view that it may be overvalued at present.