Is Savani Financial overvalued or undervalued?

As of 10 October 2025, the valuation grade for Savani Financial has moved from risky to very expensive. This indicates a significant deterioration in its valuation outlook. The company is currently assessed as overvalued, with a PE ratio of -5.74, an EV to EBITDA of -4.47, and a ROE of -24.37%. These ratios suggest that the company's financial performance is not only weak but also unsustainable at its current valuation levels.
When compared to peers, Savani Financial's valuation stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 36.56 and an EV to EBITDA of 19.67, while Life Insurance boasts a PE of 11.65 and an EV to EBITDA of 9.08, both indicating much stronger financial health and valuation metrics. Additionally, Savani Financial's recent stock performance has underperformed against the Sensex, with a year-to-date decline of 20.45% compared to the Sensex's gain of 5.58%. This further reinforces the notion that Savani Financial is overvalued in its current state.