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 shift in perception regarding the company's valuation. Based on the analysis, Savani Financial is overvalued. The company has a PE ratio of -5.74, an EV to EBITDA of -4.47, and a ROE of -24.37%, which highlight its financial struggles and negative profitability.
In comparison to its peers, Savani Financial's valuation metrics are concerning. 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 reflecting much healthier valuations. Furthermore, Savani Financial's stock has underperformed against the Sensex, with a year-to-date return of -20.45% compared to the Sensex's 5.58%, reinforcing the notion that the stock is not only overvalued but also struggling in the current market environment.