Is Roselabs Finance overvalued or undervalued?

As of 23 October 2025, the valuation grade for Roselabs Finance has moved from very attractive to risky, indicating a significant deterioration in its financial standing. The company is currently overvalued, as evidenced by its troubling headline ratios, including a PE ratio of -112.86, an EV to EBIT of -37.54, and a ROCE of -31.00%. These figures highlight severe profitability issues and negative book value, which are concerning for potential investors.
In comparison to its peers, Roselabs Finance's valuation metrics starkly contrast with those of Bajaj Finance, which has a PE ratio of 39.07, and Life Insurance, boasting a PE of 11.68. The disparity in these ratios underscores the overvaluation of Roselabs Finance in the current market context. Although the stock has shown a strong performance over the past three years with a return of 132.13%, its year-to-date decline of -6.43% relative to the Sensex's 8.21% gain suggests that the market is beginning to reflect these underlying financial challenges.