Is Regency Fincorp overvalued or undervalued?

As of 17 October 2025, the valuation grade for Regency Fincorp has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently overvalued, with a PE ratio of 37.44, an EV to EBITDA ratio of 20.50, and a PEG ratio of 0.44. These metrics suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Regency Fincorp's valuation stands out as notably high. For instance, Bajaj Finance has a PE ratio of 38.21, while Bajaj Finserv is at 34.94, both of which are still below Regency's current valuation. On the other hand, Life Insurance, which is classified as very attractive, has a PE ratio of just 11.49, highlighting the disparity in valuation within the sector. Despite a strong historical performance over three and five years, recent returns indicate a decline, with a year-to-date return of -1.23% compared to the Sensex's 7.44%, reinforcing the notion that Regency Fincorp is currently overvalued.