Is Smart Finsec overvalued or undervalued?

As of 9 October 2025, the valuation grade for Smart Finsec has moved from expensive to fair. The company appears to be fairly valued at this time. Key ratios include a PE ratio of 28.93, an EV to EBITDA of 18.51, and a ROCE of 29.73%.
In comparison to its peers, Smart Finsec's PE ratio is lower than Bajaj Finance, which is rated as very expensive with a PE of 36.57, but higher than Life Insurance, which is very attractive with a PE of 11.62. Additionally, Smart Finsec's PEG ratio is notably at 0.00, indicating potential undervaluation relative to its growth prospects. Recent stock performance shows a decline of 25.77% year-to-date, contrasting with the Sensex's gain of 5.16%, which may reinforce the perception of the stock being fairly valued in the current market context.