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 its financial outlook. The company is currently assessed as overvalued, given its troubling financial ratios, including a PE ratio of -29.47, an EV to EBITDA of -34.28, and a ROCE of -31.00%. These figures suggest that Roselabs Finance is struggling to generate positive earnings and returns on capital.
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, with a PE ratio of 11.64. This highlights the relative overvaluation of Roselabs Finance within its industry. Additionally, while the company has shown a strong performance over the long term with a 5-year return of 244.68%, its recent year-to-date return of -15.75% compared to the Sensex's 5.74% indicates a concerning trend that reinforces the perception of overvaluation.