Is Usha Financial overvalued or undervalued?

As of 30 October 2025, Usha Financial's valuation grade has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently assessed as undervalued, supported by a PE ratio of 15.12, an EV to EBIT ratio of 11.81, and an EV to EBITDA ratio of 11.50. In comparison to its peers, Bajaj Finance is considered very expensive with a PE ratio of 37.56, while Life Insurance stands out as very attractive with a PE ratio of 11.69, highlighting Usha Financial's relative affordability within the sector.
Despite recent stock performance showing a 13.74% return over the past week, Usha Financial has faced challenges year-to-date with a decline of 20%, contrasting with a 9.44% gain in the Sensex. This context reinforces the notion that the stock may be undervalued, especially when considering its strong ratios against peers and the overall market performance.