Is United Credit overvalued or undervalued?

As of 1 July 2025, the valuation grade for United Credit has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently deemed undervalued based on its financial metrics. Key ratios include a PE Ratio of 15.77, an EV to EBITDA of 14.38, and a Price to Book Value of 0.53, which suggest that the stock is trading at a discount relative to its earnings and book value.
In comparison to its peers, United Credit's PE Ratio of 15.77 is lower than Life Insurance's PE of 12.71, which is rated fair, while it significantly undercuts Bajaj Finance's high PE of 34.98, categorized as very expensive. This positioning reinforces the notion that United Credit is undervalued within its sector. Although the stock has underperformed against the Sensex over the past year, it has shown substantial growth over three years, which may indicate potential for recovery and further appreciation.