Is VLS Finance overvalued or undervalued?

As of 10 November 2025, VLS Finance has moved from a fair to a risky valuation grade. The company appears to be overvalued based on its financial ratios, with a PE ratio of -36.34, an EV to EBITDA of -13.29, and a Price to Book Value of 0.29. Compared to its peers, VLS Finance's valuation metrics are significantly weaker; for instance, Bajaj Finance has a PE ratio of 38.76, while Life Insurance boasts an EV to EBITDA of 0.1, indicating that VLS Finance is not performing favorably within its industry.
The company's return metrics further illustrate its struggles, as it has experienced a year-to-date decline of 38.78%, contrasting sharply with the Sensex's gain of 6.91% during the same period. With a ROE of just 1.87% and a ROCE of 2.50%, VLS Finance's performance lags behind its peers, reinforcing the notion that it is overvalued in the current market landscape.