Is Usha Financial overvalued or undervalued?

As of 31 October 2025, the valuation grade for Usha Financial has moved from attractive to very attractive, indicating a significant positive shift in its perceived value. The company is currently considered undervalued, with a price-to-earnings (PE) ratio of 14.46, a price-to-book value of 0.95, and an EV to EBITDA ratio of 10.98. These ratios suggest that Usha Financial is trading at a discount compared to its peers.
In comparison to its industry peers, Usha Financial's PE ratio is significantly lower than that of Bajaj Finance, which stands at 37.23, and Bajaj Finserv at 35.03, both of which are categorized as very expensive. Additionally, Life Insurance, another peer, shows a more attractive PE ratio of 11.62, reinforcing Usha Financial's favorable position. Although Usha Financial has underperformed the Sensex over the past year with a return of -41.1%, the current valuation metrics suggest that it presents a compelling investment opportunity in the non-banking financial company sector.