Is VLS Finance overvalued or undervalued?

As of 9 July 2025, VLS Finance has moved from a fair to an attractive valuation grade, indicating a shift in market perception. The company is currently considered undervalued, especially when examining its key financial ratios. The PE ratio stands at 18.89, while the Price to Book Value is notably low at 0.35, and the EV to EBITDA ratio is 9.24.
In comparison to its peers, VLS Finance's valuation metrics are compelling. For instance, Life Insurance has a PE ratio of 12.38 and an EV to EBITDA of 9.74, while Bajaj Finance is significantly more expensive with a PE of 35.12 and an EV to EBITDA of 19.55. This suggests that VLS Finance offers a more attractive investment opportunity relative to its peers. Despite recent stock performance trailing the Sensex over the past year, the long-term returns of 376.81% over five years highlight its potential for growth, reinforcing the undervaluation narrative.