Is Roselabs Finance overvalued or undervalued?

As of 19 September 2025, Roselabs Finance has moved from a very attractive to a risky valuation grade. The company is currently overvalued, indicated by its negative PE ratio of -29.47, a Price to Book Value of -6.23, and an EV to EBITDA ratio of -34.28. These figures highlight significant financial distress and a lack of profitability.
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, boasting a PE of 11.64. The negative return on capital employed (ROCE) of -31.00% further underscores the challenges faced by Roselabs Finance. While the company has outperformed the Sensex in the short term with a 1-week return of 4.32% compared to the Sensex's 0.88%, its longer-term performance, particularly a year-to-date decline of -15.75%, raises concerns about its sustainability and overall valuation.