Is United Credit overvalued or undervalued?

Jul 03 2025 08:01 AM IST
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As of July 2, 2025, United Credit is fairly valued with a PE ratio of 16.29, an EV to EBIT of 15.90, and an ROE of 3.37%, but its stock performance has lagged behind the Sensex, indicating potential near-term challenges.
As of 2 July 2025, the valuation grade for United Credit has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 16.29, an EV to EBIT of 15.90, and an ROE of 3.37%.

When compared to peers, United Credit's PE ratio is higher than Life Insurance's 12.54 but significantly lower than Bajaj Finance's 34.46, indicating a more reasonable valuation relative to some competitors. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -1.94% compared to the Sensex's 6.75%. This suggests that while the stock is fairly valued, it may face challenges in the near term.
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