Is Usha Financial overvalued or undervalued?

As of 29 October 2025, Usha Financial has moved from an attractive to a very attractive valuation grade. The company is currently considered undervalued, with a PE ratio of 15.12, an EV to EBIT of 11.81, and an EV to EBITDA of 11.50. These ratios indicate that Usha Financial is trading at a lower valuation compared to its peers, such as Bajaj Finance, which has a PE ratio of 37.96, and Bajaj Finserv, with a PE ratio of 35.85.
In comparison to its industry, Usha Financial's Price to Book Value stands at 0.99, suggesting it is trading near its book value, while the PEG ratio is notably at 0.00, indicating strong growth potential without the corresponding price increase. Despite a challenging year-to-date performance of -20% against a Sensex return of 10.19%, the overall valuation metrics suggest that Usha Financial presents a compelling investment opportunity at its current price of 48.00.