Is Som Datt Finance overvalued or undervalued?

As of 23 October 2025, the valuation grade for Som Datt Finance has moved from very expensive to risky, indicating a significant shift in its perceived value. The company is currently assessed as overvalued. Key ratios reveal a PE ratio of -36.01, an EV to EBITDA of -31.05, and a Price to Book Value of 4.95, which suggest that the company's financial metrics are underperforming relative to its peers.
In comparison to its industry peers, Som Datt Finance's valuation metrics are considerably less favorable. For instance, Bajaj Finance has a PE ratio of 39.07 and an EV to EBITDA of 20.55, while Life Insurance shows a PE of 11.68 and an EV to EBITDA of 9.11, both indicating more attractive valuation positions. Despite a strong return of 308.47% over the past three years, the company's recent performance has lagged behind the Sensex, with a year-to-date return of -6.61% compared to the Sensex's 8.21%.