Is TCI Finance overvalued or undervalued?

As of 10 October 2025, the valuation grade for TCI Finance has moved from risky to very expensive. The company is currently considered overvalued based on its financial ratios and peer comparisons. Key ratios include a PE ratio of 4.56, an EV to EBIT of -5.10, and a PEG ratio of 0.01, all of which indicate significant financial distress and lack of profitability.
In comparison to its peers, TCI Finance's valuation metrics are starkly unfavorable. For instance, Bajaj Finance has a PE ratio of 36.56, while Life Insurance boasts a PE of 11.65, highlighting the disparity in market valuation. Furthermore, TCI Finance's negative price to book value and negative return on capital employed further emphasize its overvaluation relative to the industry. Despite a recent one-week stock return of 9.28%, the year-to-date performance shows a decline of 34.21%, reinforcing the notion that the stock is not aligned with its intrinsic value.