Is Vertex Secur. overvalued or undervalued?

As of 22 August 2025, Vertex Securities has moved from a grade of risky to expensive, indicating a significant shift in its valuation outlook. The company is currently considered overvalued. Key ratios reveal a PE ratio of -29.31, an EV to EBITDA of -27.32, and a Price to Book Value of 3.33, all of which suggest that the company's financial performance is underwhelming compared to its market valuation.
In comparison to peers, Vertex Securities stands out negatively; for instance, Life Insurance has a PE ratio of 11.55 and an EV to EBITDA of 8.99, while Bajaj Finance shows a PE of 31.91 and an EV to EBITDA of 18.05. These comparisons further emphasize Vertex's overvaluation, especially given its negative earnings metrics. Additionally, the company's stock has underperformed significantly year-to-date, down 29.16%, contrasting sharply with the Sensex's gain of 4.05% in the same period, reinforcing the notion that Vertex Securities is not a favorable investment at its current price of 3.96.