Is TruCap Finance overvalued or undervalued?

As of 20 June 2025, the valuation grade for TruCap Finance has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently deemed overvalued. Key ratios highlight this situation, with a PE Ratio of -2.86, an EV to EBIT of 24.52, and an ROE of -39.82%. These figures suggest that the company's profitability and valuation metrics are not aligned favorably.
In comparison to its peers, TruCap Finance's valuation stands out negatively; for instance, Life Insurance has a PE Ratio of 12.26 and an EV to EBITDA of 9.63, while Bajaj Finance shows a PE of 33.79 and an EV to EBITDA of 19.09. The stark contrast in these ratios reinforces the notion that TruCap Finance is not only overvalued but also struggling significantly in terms of financial performance. Moreover, the company's stock has underperformed relative to the Sensex over the past year, with a return of -69.67% compared to the Sensex's 6.36%, further emphasizing its valuation challenges.