Is Smart Finsec overvalued or undervalued?

As of 31 October 2025, Smart Finsec's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its stock. The company is currently fairly valued, with a PE ratio of 26.84, an EV to EBIT of 17.38, and an ROCE of 29.73%. In comparison to its peers, Bajaj Finance is classified as very expensive with a PE ratio of 37.23, while Life Insurance is considered very attractive with a PE of 11.62, highlighting Smart Finsec's relatively better valuation within its sector.
Despite recent stock performance showing a decline of 34.38% over the past year compared to a 5.73% increase in the Sensex, the company's fundamentals suggest it is positioned well against its peers. The PEG ratio of 0.00 further emphasizes its potential for growth relative to its price, reinforcing the view that Smart Finsec is currently fairly valued in the market.