Is Usha Financial overvalued or undervalued?

As of 4 November 2025, Usha Financial's valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company is currently assessed as undervalued. Key ratios include a PE ratio of 13.55, an EV to EBIT of 10.55, and a Price to Book Value of 0.89, which suggest that the stock is trading at a discount relative to its earnings and book value.
In comparison to peers, Usha Financial's PE ratio of 13.55 is significantly lower than Bajaj Finance's 37.67 and Life Insurance's 11.76, indicating that it may offer better value for investors. Additionally, the company's EV to EBITDA ratio of 10.27 is competitive when compared to the industry. Despite recent poor performance, with a year-to-date return of -28.33% compared to the Sensex's 8.26%, the underlying valuation metrics suggest that Usha Financial presents a more attractive investment opportunity than its peers.