Is TCI Finance overvalued or undervalued?

As of 17 October 2025, TCI Finance has moved from a grade of risky to very expensive. The company is currently overvalued based on its financial metrics. Key ratios include a PE ratio of 4.35, an EV to EBIT of -4.89, and a PEG ratio of 0.00, all indicating significant financial distress and negative capital employed.
In comparison to its peers, TCI Finance's valuation stands out as excessively high when juxtaposed with Bajaj Finance's PE of 38.21 and Life Insurance's PE of 11.49. The negative return metrics further reinforce the overvaluation narrative, with a year-to-date stock return of -37.16% compared to a positive Sensex return of 7.44%. Overall, TCI Finance's current valuation does not align with its financial performance and market position.