Is Smart Finsec overvalued or undervalued?

As of 7 November 2025, Smart Finsec's valuation grade has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently overvalued, with a PE ratio of 26.09, an EV to EBIT of 16.79, and an EV to EBITDA of 16.34. In comparison to its peers, Bajaj Finance has a much higher PE ratio of 38.09, while Life Insurance stands out with a notably low PE of 11.44, suggesting that Smart Finsec's valuation is not justified when placed alongside these competitors.
The company's return metrics also highlight its overvaluation, with a year-to-date stock return of -33.07%, significantly underperforming the Sensex's gain of 6.50% in the same period. With a PEG ratio of 0.00 and a ROE of 7.33%, the financial indicators further emphasize that Smart Finsec is not only overvalued but also lacks the growth potential to justify its current price.