Is Vertex Secur. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Vertex Securities has moved from risky to expensive, indicating a shift in perception towards the company's financial health. The company is currently overvalued, with a PE ratio of -28.94, an EV to EBITDA ratio of -26.95, and a Price to Book Value of 3.29. These ratios suggest significant financial distress, particularly highlighted by the negative earnings metrics.
In comparison to its peers, Vertex Securities stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 36.56, while Life Insurance boasts a much more favorable EV to EBITDA ratio of 9.08. The stark contrast in these ratios underscores Vertex's overvaluation relative to its industry. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -30.05% compared to the Sensex's 5.58%, further reinforcing the notion that Vertex Securities is not a sound investment at its current price of 3.91.