Is Srestha Finvest overvalued or undervalued?

As of 14 August 2025, Srestha Finvest's valuation grade has moved from risky to expensive, indicating a shift in perception regarding its value. The company appears to be overvalued based on its current metrics, particularly with a PE ratio of -0.98, an EV to EBITDA of -0.54, and a ROE of -37.68%. These figures suggest significant financial distress and inefficiency in generating returns for shareholders.
When compared to its peers, Srestha Finvest's valuation stands out unfavorably. For instance, Life Insurance, categorized as very attractive, boasts a PE ratio of 11.53, while Bajaj Finance is marked as very expensive with a PE ratio of 30.73. The stark contrast in these ratios highlights Srestha Finvest's overvaluation in the context of its industry. Additionally, the company's stock performance has been poor, with a year-to-date return of -53.66%, significantly underperforming the Sensex, which has gained 3.15% in the same period.