Is TCI Finance overvalued or undervalued?

As of 17 October 2025, the valuation grade for TCI Finance has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its financial metrics. TCI Finance has a PE ratio of 4.35, an EV to EBIT of -4.89, and an EV to EBITDA of -4.89, all of which suggest that the company's financial performance is not just weak but also negative in terms of capital employed and book value.
When compared to peers, TCI Finance stands out unfavorably; for instance, Bajaj Finance has a PE ratio of 38.21, while Life Insurance boasts a PE of 11.49, highlighting the stark contrast in valuation. Additionally, the stock has underperformed against the Sensex, with a year-to-date return of -37.16% compared to the Sensex's 7.44%, further reinforcing the notion that TCI Finance is overvalued in the current market context.