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, with a PE ratio of 14.46, an EV to EBITDA ratio of 10.98, and a Price to Book Value of 0.95. These metrics suggest that the stock is trading at a discount compared to its earnings and book value.
In comparison to its peers, Usha Financial's valuation stands out favorably; for instance, Bajaj Finance has a much higher PE ratio of 37.23, while Life Insurance shows a more attractive EV to EBITDA of 9.05. The PEG ratio for Usha is notably low at 0.00, further reinforcing its undervalued status. Despite the company's recent stock performance lagging behind the Sensex, with a year-to-date decline of 23.5% compared to the Sensex's gain of 8.79%, the current valuation metrics suggest that Usha Financial presents a compelling investment opportunity.