Is TCI Finance overvalued or undervalued?

As of 4 September 2025, TCI Finance's valuation grade has moved from risky to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a price-to-earnings (PE) ratio of 4.94, an EV to EBIT ratio of -5.53, and a PEG ratio of 0.01, all suggesting that the company is not generating sufficient earnings relative to its valuation.
In comparison to its peers, TCI Finance's PE ratio is starkly lower than Bajaj Finance's 33.36 and Life Insurance's 11.41, both of which are categorized as very expensive and very attractive, respectively. This stark contrast highlights TCI Finance's unfavorable position within the market. Additionally, the company's recent stock performance has been poor, with a year-to-date return of -28.68%, while the Sensex has gained 3.30% during the same period, further reinforcing the notion of overvaluation.