Is TruCap Finance overvalued or undervalued?

As of 4 August 2025, the valuation grade for TruCap Finance has moved from very expensive to expensive. The company is currently assessed as overvalued, given its negative PE ratio of -2.76, a price-to-book value of 1.10, and an EV to EBITDA ratio of 11.43. These figures suggest that the market is pricing the stock at a premium despite its poor financial performance, as evidenced by a ROE of -39.82% and a ROCE of only 4.24%.
In comparison to its peers, TruCap Finance's valuation metrics stand out unfavorably. For instance, Life Insurance, which is rated fair, has a PE ratio of 11.73 and an EV to EBITDA of 9.16, while Bajaj Finance, rated very expensive, shows a PE of 31.57 and an EV to EBITDA of 17.94. The stark contrast in these ratios highlights TruCap Finance's overvaluation in the current market context. Additionally, the company's stock has significantly underperformed against the Sensex, with a one-year return of -68.49% compared to a mere 0.05% for the index, further reinforcing the notion that TruCap Finance is overvalued.