Is Sakthi Finance overvalued or undervalued?

As of 27 June 2025, Sakthi Finance has moved from a fair valuation to an expensive rating. The company is currently overvalued based on its financial metrics. Key ratios include a PE Ratio of 19.85, an EV to EBITDA of 9.32, and a PEG Ratio of 3.44, which indicate a premium valuation compared to its peers.
In comparison, Life Insurance has a PE Ratio of 12.53 and an EV to EBITDA of 9.88, suggesting it is fairly valued, while Bajaj Finance is categorized as very expensive with a PE Ratio of 35.35. This highlights that Sakthi Finance's valuation is not justified by its financial performance relative to its peers. Additionally, the company's recent stock performance shows a year-to-date decline of 14.20%, contrasting with a 7.58% gain in the Sensex, further reinforcing the overvaluation narrative.