Is Smart Finsec overvalued or undervalued?

As of 7 November 2025, the valuation grade for Smart Finsec has moved from fair to very expensive, indicating a significant shift in its market perception. The company appears to be overvalued based on its current metrics, with a PE ratio of 26.09, an EV to EBIT of 16.79, and a ROE of 7.33%. In comparison to peers, Bajaj Finance has a much higher PE ratio of 38.09, while Life Insurance stands out with a very attractive valuation at a PE of 11.44.
Given these ratios and the current valuation grade, Smart Finsec is deemed overvalued. The company's stock has underperformed significantly against the Sensex, with a year-to-date return of -33.07% compared to the Sensex's 6.50%, reinforcing the notion that the stock may not justify its current price level.