Is Regency Fincorp overvalued or undervalued?

As of 31 October 2025, Regency Fincorp's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 29.64, an EV to EBIT of 19.12, and an EV to EBITDA of 18.28. In comparison to peers, Bajaj Finance is categorized as very expensive with a PE of 37.23, while Life Insurance stands out as very attractive with a PE of 11.62, highlighting the relative overvaluation of Regency Fincorp.
Despite a strong historical performance, with a 3-year return of 486.46% compared to the Sensex's 38.18%, the current valuation metrics suggest that investors may be paying a premium for future growth that may not materialize. The PEG ratio of 0.23 indicates potential growth, but the overall financial ratios and peer comparisons suggest that Regency Fincorp is not a favorable investment at this time.