Is Sakthi Finance overvalued or undervalued?

As of 7 November 2025, Sakthi Finance's valuation grade has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently assessed as overvalued. Key financial ratios include a PE ratio of 16.79, an EV to EBITDA ratio of 8.88, and a PEG ratio of 3.57, which suggest that the stock is priced higher relative to its earnings growth potential compared to its peers.
In comparison to its industry peers, Bajaj Finance has a much higher PE ratio of 38.09, while Life Insurance stands out with a more attractive PE of 11.44. This highlights that Sakthi Finance's valuation does not align favorably with its competitors, further supporting the conclusion of overvaluation. Additionally, the stock has underperformed relative to the Sensex over the past year, with a return of -36.60% compared to the Sensex's 4.62%, reinforcing concerns about its current pricing.