Is Usha Financial overvalued or undervalued?

As of 31 October 2025, Usha Financial's valuation grade has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued based on its key financial ratios. The PE ratio stands at 14.46, while the EV to EBITDA ratio is 10.98, and the Price to Book Value is notably low at 0.95, suggesting that the stock is trading below its intrinsic value.
When compared to peers, Usha Financial's valuation appears favorable. For instance, Bajaj Finance is classified as very expensive with a PE ratio of 37.23, and Bajaj Finserv also shows high valuations with a PE of 35.03. In contrast, Life Insurance, which is categorized as very attractive, has a PE of 11.62, yet Usha Financial's ratios still indicate a more compelling investment opportunity. Additionally, despite recent underperformance relative to the Sensex over the past year, the current valuation metrics suggest that Usha Financial is positioned for potential upside in the market.