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 appears overvalued based on its current financial metrics. Key ratios include a PE Ratio of 16.79, an EV to EBIT of 9.24, and a PEG Ratio of 3.57, all of which suggest that the stock may be priced higher than its intrinsic value.
In comparison to its peers, Sakthi Finance's PE Ratio is notably lower than Bajaj Finance's 38.09, yet higher than Life Insurance's attractive valuation of 11.44. Additionally, the EV to EBITDA ratio of 8.88 is less favorable compared to Bajaj Finserv's 13.08, further supporting the view of overvaluation. The company's stock has underperformed relative to the Sensex, particularly over the past year, where it has declined by 36.60% compared to the Sensex's gain of 4.62%.