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 deemed overvalued, with a PE ratio of -1.26, an EV to EBITDA of -4.99, and a Price to Book Value of 0.70. These ratios reflect severe financial distress, particularly highlighted by a negative ROE of -39.31% and a negative ROCE of -8.00%.
In comparison to its peers, Spandana Sphoort's valuation metrics starkly contrast with those of Bajaj Finance, which has a PE ratio of 37.23, and Life Insurance, boasting a PE of 11.62. This disparity underscores the challenges Spandana faces in the market. Additionally, the company's stock has underperformed significantly against the Sensex, with a YTD return of -22.02% compared to the Sensex's 7.42%. Overall, the financial indicators and peer comparisons suggest that Spandana Sphoort is overvalued in its current state.