Is Smart Finsec overvalued or undervalued?

As of 10 November 2025, the valuation grade for Smart Finsec has moved from very expensive to fair. The company is currently fairly valued, with a PE ratio of 25.62, an EV to EBIT ratio of 16.42, and a ROCE of 29.73%. In comparison to peers, Bajaj Finance is considered very expensive with a PE ratio of 38.76, while Life Insurance is very attractive with a PE ratio of 11.14.
Despite the recent downgrade in valuation, Smart Finsec's performance has lagged behind the Sensex, with a year-to-date return of -34.27% compared to the Sensex's 6.91%. This underperformance, along with the current valuations, suggests that while the company is fairly valued, there may be concerns regarding its growth prospects relative to its peers.