Is Superior Finleas overvalued or undervalued?

As of 10 October 2025, the valuation grade for Superior Finleas has moved from risky to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently assessed as overvalued. Key ratios highlight this concern, with a PE ratio of -4.53, an EV to EBIT of -48.28, and an ROE of -0.97%, all suggesting poor financial performance and high valuation multiples compared to its peers.
In comparison to notable peers, Bajaj Finance has a PE ratio of 36.56 and an EV to EBITDA of 19.67, while Life Insurance boasts a PE of 11.65 and an EV to EBITDA of 9.08, both indicating a much healthier valuation profile. The stark contrast in these ratios reinforces the overvaluation of Superior Finleas. Additionally, the company's stock has underperformed relative to the Sensex, with a year-to-date return of -16.11% compared to the Sensex's 5.58%, further emphasizing the challenges it faces in the current market environment.