Is Vertex Secur. overvalued or undervalued?

As of 15 October 2025, Vertex Securities has moved from an expensive to a risky valuation grade. The company appears to be overvalued, given its negative PE ratio of -32.02, an EV to EBIT of -24.31, and a ROE of -7.95%. In comparison to its peers, Bajaj Finance, which is categorized as very expensive, has a PE ratio of 37.84, while Life Insurance, deemed very attractive, has a PE ratio of 11.69, highlighting the significant disparity in valuation metrics.
Vertex's financial ratios indicate a challenging position within the Non-Banking Financial Company (NBFC) sector, particularly with a PEG ratio of 0.00 and a negative ROCE of -13.36%. The company's stock has underperformed relative to the Sensex, especially year-to-date, where it has declined by 28.80% compared to the Sensex's gain of 5.72%. This performance further reinforces the notion that Vertex Securities is currently overvalued in the market.