Is Roselabs Finance overvalued or undervalued?

As of 19 September 2025, the valuation grade for Roselabs Finance has moved from very attractive to risky, indicating a significant shift in perception regarding its financial health. The company is currently considered overvalued, as evidenced by its negative PE ratio of -29.47, an EV to EBIT ratio of -34.28, and a ROCE of -31.00%. These ratios suggest that the company is struggling to generate positive returns and is facing substantial financial challenges.
In comparison to its peers, Roselabs Finance's valuation metrics starkly contrast with those of Bajaj Finance, which has a PE ratio of 35.51, and Life Insurance, which boasts a PE ratio of 11.64. The peer comparison highlights that Roselabs Finance is not only underperforming but is also significantly more expensive relative to its earnings potential. Additionally, while the stock has shown a 1-year return of 9.15%, it has underperformed in the year-to-date period with a decline of 15.75% compared to a 5.74% gain in the Sensex, further reinforcing the notion of its overvaluation.