Is Variman Global overvalued or undervalued?

As of 20 October 2025, Variman Global's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on key financial metrics. The PE ratio stands at 87.11, significantly higher than peers such as Bajaj Finance at 38.6 and Life Insurance at 11.57. Additionally, Variman's EV to EBITDA ratio is 145.81, while Bajaj Finserv, another peer, has a ratio of 13.19, further highlighting the disparity in valuation.
In terms of financial health, Variman Global exhibits a negative ROCE of -2.07% and a low ROE of 1.33%, which raises concerns about its profitability. Given these ratios and the comparison with its peers, Variman Global is deemed overvalued. The company's recent stock performance has also been disappointing, with a year-to-date return of -14.57%, contrasting sharply with the Sensex's gain of 7.97% during the same period, reinforcing the notion that the stock may not be a favorable investment at its current price level.