Is Spandana Sphoort overvalued or undervalued?

As of 31 October 2025, the valuation grade for Spandana Sphoort has moved from fair to risky, indicating a significant deterioration in its financial outlook. The company is currently assessed as overvalued, given its troubling financial ratios, including a PE ratio of -1.26, an EV to EBITDA of -4.99, and a ROE of -39.31%. These figures suggest that the company is struggling to generate profits and is facing substantial operational challenges.
In comparison to its peers, Spandana Sphoort's valuation metrics are starkly unfavorable. For instance, Bajaj Finance has a PE ratio of 37.23, while Life Insurance stands at a more attractive 11.62, highlighting the disparity in valuation within the finance sector. Additionally, the company's recent stock performance has been poor, with a year-to-date return of -22.02%, significantly underperforming the Sensex, which has gained 7.42% in the same period. This further reinforces the notion that Spandana Sphoort is currently overvalued in the market.