Is V B Desai Fin. overvalued or undervalued?

As of 12 November 2025, the valuation grade for V B Desai Fin. has moved from attractive to fair. The company is currently fairly valued, with a PE ratio of 14.22, an EV to EBIT of 10.44, and a Price to Book Value of 0.89. In comparison to its peers, Bajaj Finance is considered very expensive with a PE ratio of 34.41, while Life Insurance is very attractive with a PE ratio of 11.14, highlighting the relative positioning of V B Desai Fin. within the market.
Despite the fair valuation, V B Desai Fin. has faced significant stock performance challenges, with a year-to-date return of -25.77%, underperforming the Sensex, which has returned 8.10% in the same period. This underperformance, coupled with a low ROCE of 0.93% and a ROE of 6.25%, suggests that while the company is fairly valued, it may have underlying operational inefficiencies that could impact future growth prospects.