Is Spandana Sphoort overvalued or undervalued?

As of 3 October 2025, the valuation grade for Spandana Sphoort has moved from fair to risky, indicating a significant deterioration in its financial standing. The company is currently assessed as overvalued, with a PE ratio of -1.29, an EV to EBITDA of -5.02, and a ROE of -39.31%. These ratios reflect severe financial challenges, particularly the negative earnings and returns on equity.
In comparison to its peers, Spandana Sphoort's valuation metrics are starkly unfavorable. For instance, Bajaj Finance has a PE ratio of 35.3, while Life Insurance boasts a more attractive EV to EBITDA of 9.16. The stark contrast in these ratios highlights Spandana's underperformance relative to its industry counterparts. Additionally, the company's stock has underperformed significantly over the past year, with a return of -54.08% compared to a -1.56% return for the Sensex, reinforcing the notion that it is currently overvalued.