Is Savani Financial overvalued or undervalued?

As of 13 October 2025, Savani Financial's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company is still considered overvalued based on its financial ratios. The PE ratio stands at -5.60, while the EV to EBITDA ratio is -4.32, both of which are significantly negative and suggest underlying issues. Additionally, the Price to Book Value ratio is 1.36, which, while not excessively high, does not compensate for the negative earnings indicators.
In comparison to its peers, Savani Financial's valuation metrics are starkly unfavorable. For instance, Bajaj Finance has a PE ratio of 37.04, and Life Insurance boasts an EV to EBITDA of 9.09, highlighting how Savani Financial lags behind in profitability and valuation. Given these ratios and the overall market sentiment, Savani Financial is deemed overvalued. Furthermore, the company's stock has underperformed against the Sensex, with a year-to-date return of -22.41% compared to the Sensex's 5.36%, reinforcing the notion that the stock is not a favorable investment at its current price of 17.07.