Is SSPN FINANCE overvalued or undervalued?

As of 28 August 2025, the valuation grade for SSPN FINANCE has moved from fair to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current financial metrics, particularly with a Price-to-Earnings (PE) ratio of 1.95, an EV to EBIT ratio of 1.86, and a Price to Book Value of 0.45. These ratios suggest that the company is trading at a premium compared to its earnings and book value.
When compared to its peers, SSPN FINANCE stands out as overvalued, especially against Life Insurance, which has a PE ratio of 11.27 and an EV to EBITDA of 8.74, both of which indicate a more attractive valuation. Other peers like Bajaj Finance and Bajaj Finserv also exhibit higher valuations with PE ratios of 31.28 and 32.13, respectively. The recent performance of SSPN FINANCE has been poor, with a year-to-date return of -40.67%, contrasting sharply with the Sensex's positive return of 2.48% in the same period, further reinforcing the notion that the stock is overvalued in its current state.