Is Usha Financial overvalued or undervalued?

As of 18 November 2025, Usha Financial's valuation grade has moved from very attractive to attractive. The company is currently assessed as undervalued, supported by a PE ratio of 13.75, a price-to-book value of 0.88, and an EV to EBITDA ratio of 20.19. In comparison to its peers, Bajaj Finance is deemed very expensive with a PE ratio of 34.46, while Life Insurance stands out as very attractive with a PE ratio of 11.34.
Despite Usha Financial's recent stock performance showing a decline of 27.25% year-to-date compared to a 9.58% gain in the Sensex, the current valuation metrics suggest that the stock presents a buying opportunity. The company's ROCE stands at 4.48% and ROE at 6.37%, indicating potential for improvement relative to its peers, which further supports the undervaluation thesis.