Is Sunshine Capital overvalued or undervalued?

As of 12 November 2025, Sunshine Capital's valuation grade has moved from very attractive to expensive, indicating a shift in perception regarding its market value. The company appears to be overvalued based on its current metrics, with a PE ratio of 5.42, an EV to EBITDA ratio of 5.40, and a PEG ratio of 0.02. These ratios suggest that while the company may have low earnings multiples, the overall valuation does not justify its current price given the recent performance.
In comparison to its peers, Sunshine Capital's valuation stands out as expensive, particularly when juxtaposed with Bajaj Finance, which has a PE ratio of 34.41, and Life Insurance, which is considered very attractive with a PE of 11.14. The significant disparity in these ratios highlights that Sunshine Capital may not be a favorable investment relative to its competitors. Additionally, the company's stock has underperformed significantly against the Sensex, with a year-to-date decline of 82%, further reinforcing the notion that it is overvalued in the current market context.