Is Rich Universe overvalued or undervalued?

As of 28 August 2025, the valuation grade for Rich Universe has moved from fair to risky, indicating a shift in perception regarding its financial health and market position. The company appears to be overvalued based on its current metrics, with a PE ratio of 7.48, a Price to Book Value of 1.06, and an EV to EBIT of -9.01. These figures suggest that the company is struggling to generate positive earnings relative to its enterprise value.
In comparison to its peers, Rich Universe's valuation stands out unfavorably. For instance, Life Insurance, which is rated as very attractive, has a PE ratio of 11.27, while Bajaj Finance is considered very expensive with a PE ratio of 31.28. Additionally, Rich Universe's negative EV to EBIT ratio highlights its challenges in profitability compared to competitors in the Non-Banking Financial Company sector. Despite a recent one-year stock return of 6.61%, which outperformed the Sensex's decline of 2.08%, the overall valuation suggests caution for potential investors.