Is Sakthi Finance overvalued or undervalued?

As of 4 November 2025, Sakthi Finance has moved from a fair to an expensive valuation grade. The company is currently overvalued based on its financial metrics. Key ratios include a PE Ratio of 16.71, an EV to EBITDA of 8.87, and a PEG Ratio of 3.56, which suggest that the stock is priced higher relative to its earnings growth potential.
When compared to peers, Sakthi Finance's PE Ratio is significantly lower than Bajaj Finance's 37.67, indicating that while it is less expensive than some competitors, it still falls into the expensive category overall. Additionally, Life Insurance, which is very attractive with a PE Ratio of 11.76, highlights the relative overvaluation of Sakthi Finance. Recent stock performance shows a decline of 34.63% over the past year, contrasting with a Sensex return of 5.94%, further supporting the view that the stock is overvalued in the current market context.