Is Srestha Finvest overvalued or undervalued?

As of 14 August 2025, the valuation grade for Srestha Finvest has moved from risky to expensive, indicating a shift towards a less favorable outlook. The company appears to be overvalued based on its financial metrics, with a PE ratio of -0.98, a price-to-book value of 0.37, and an EV to EBITDA ratio of -0.54. These figures suggest significant operational challenges, as evidenced by a negative return on equity (ROE) of -37.68% and a return on capital employed (ROCE) of -22.42%.
In comparison to its peers, Srestha Finvest's valuation stands out unfavorably. For instance, Life Insurance boasts a PE ratio of 11.53 and an EV to EBITDA of 8.97, while Bajaj Finance is at a PE of 30.73 and an EV to EBITDA of 17.64, both reflecting much stronger financial health and growth prospects. The company's recent stock performance has been poor, with a year-to-date decline of 53.66%, contrasting sharply with the Sensex's gain of 3.15% over the same period. Overall, Srestha Finvest is deemed overvalued given its current financial ratios and peer comparisons.