Is V B Desai Fin. overvalued or undervalued?

As of 6 November 2025, the valuation grade for V B Desai Fin. has moved from fair to attractive, indicating a more favorable assessment of its worth. The company is currently considered undervalued. Key ratios include a PE Ratio of 14.69, an EV to EBIT of 4.96, and a PEG Ratio of 0.25, which suggest that the stock is trading at a reasonable price relative to its earnings and growth potential.
In comparison with peers, V B Desai Fin. has a PE Ratio that is significantly lower than Bajaj Finance, which stands at 37.19, and Life Insurance, which is at 11.62, both of which are categorized as very expensive or very attractive, respectively. The EV to EBITDA ratio of 4.96 for V B Desai Fin. also positions it favorably against its peers, reinforcing the undervaluation narrative. Despite recent underperformance relative to the Sensex, particularly in the short term, the long-term returns over 3 years and 5 years are notably strong, suggesting potential for recovery and growth.