Is TCFC Finance overvalued or undervalued?

As of 6 November 2025, TCFC Finance has moved from a valuation grade of very expensive to risky. The company is currently considered overvalued based on its high PE ratio of 213.45, alongside an EV to EBITDA ratio of -23.06 and a Price to Book Value of 0.43. These ratios indicate significant discrepancies when compared to its peers, such as Bajaj Finance with a PE ratio of 37.19 and Life Insurance at 11.62, both of which are in a more favorable valuation range.
The peer comparison highlights that TCFC Finance's valuation metrics are not only elevated but also suggest a lack of profitability, as evidenced by its negative EV to EBITDA ratio. Additionally, the company's recent stock performance has underperformed against the Sensex, particularly with a year-to-date return of -38.71% compared to the Sensex's 6.62%. Overall, TCFC Finance appears to be overvalued in the current market context.