Is Som Datt Finance overvalued or undervalued?

As of 10 October 2025, the valuation grade for Som Datt Finance has moved from risky to very expensive. This indicates a significant shift in the perception of the company's value, suggesting it is currently overvalued. The company exhibits a PE ratio of -34.42, an EV to EBITDA ratio of -29.68, and a Price to Book Value of 4.73, which are all concerning indicators of financial health.
In comparison to its peers, Som Datt Finance stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 36.56, while Life Insurance boasts a much more attractive EV to EBITDA ratio of 9.08. These comparisons highlight that Som Datt Finance is not only overvalued but also lacks the profitability metrics that its peers exhibit. Furthermore, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -10.74% compared to the Sensex's 5.58%, reinforcing the notion that it is overvalued in the current market context.