Is Som Datt Finance overvalued or undervalued?

As of 17 October 2025, the valuation grade for Som Datt Finance has moved from risky to very expensive. The company is currently overvalued based on its financial metrics. Notable ratios include a PE ratio of -35.44, an EV to EBITDA ratio of -30.56, and a Price to Book Value of 4.87, which indicate significant financial distress and high valuation relative to its book value.
In comparison to its peers, Som Datt Finance's valuation appears excessive, especially when contrasted with Bajaj Finance, which has a PE ratio of 38.21, and Life Insurance, which boasts a much lower PE ratio of 11.49. The company's recent performance shows a 1-week stock return of 2.97%, outperforming the Sensex's 1.76% return, but its year-to-date return of -8.08% highlights ongoing challenges. Overall, the current financial metrics and peer comparisons suggest that Som Datt Finance is not a sound investment at its present valuation.