Is Vertex Secur. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Vertex Securities has moved from risky to expensive, indicating a shift in perception regarding its market valuation. The company is currently considered overvalued, particularly given its negative PE ratio of -31.62 and EV to EBIT of -23.98, which suggest significant concerns about profitability. Additionally, the Price to Book Value stands at 3.31, further reinforcing the notion that the stock is priced too high relative to its underlying assets.
In comparison to its peers, Vertex Securities exhibits a stark contrast, with Bajaj Finance having a PE ratio of 38.21 and EV to EBITDA of 20.25, while Life Insurance shows a more attractive PE of 11.49 and EV to EBITDA of 8.94. This highlights that Vertex is not only overvalued but also underperforming relative to its industry counterparts. Furthermore, the company's recent stock performance has been disappointing, with a year-to-date return of -29.70%, significantly lagging behind the Sensex's 7.44% return, which underscores the challenges it faces in the current market environment.