Is Som Datt Finance overvalued or undervalued?

As of 19 September 2025, the valuation grade for Som Datt Finance moved from very expensive to risky. This indicates a shift in perception regarding the company's financial health and market position. The company is currently considered overvalued, particularly given its troubling financial ratios, including a PE ratio of -42.18, an EV to EBIT of -36.38, and a Price to Book Value of 5.80.
When compared to peers, Som Datt Finance's metrics stand out negatively. For instance, Bajaj Finance has a PE ratio of 35.51 and an EV to EBITDA of 19.31, while Life Insurance boasts a PE of 11.64 and an EV to EBITDA of 9.07, both indicating much healthier valuations. Additionally, despite a strong return of 18.14% over the past year compared to a decline in the Sensex, the underlying financial ratios suggest that Som Datt Finance is not positioned favorably within its industry.