Edelweiss Financial Services Adjusts Valuation Grade Amidst Market Challenges and Peer Comparison

Edelweiss Financial Services has recently undergone a valuation adjustment, reflecting its current financial metrics and market position. The company, operating in the finance/NBFC sector, has a price-to-earnings (PE) ratio of 15.36 and a price-to-book value of 1.41. Its enterprise value to EBITDA stands at 6.65, while the enterprise value to EBIT is recorded at 6.92. The PEG ratio is noted at 1.01, and the dividend yield is 1.99%.
In terms of profitability, Edelweiss showcases a return on capital employed (ROCE) of 16.19% and a return on equity (ROE) of 9.18%. When compared to its peers, Edelweiss presents a more favorable valuation profile, particularly against companies like Aadhar Housing Finance and Nuvama Wealth, which exhibit higher PE ratios and enterprise value metrics.

Despite recent stock performance showing a decline over various periods, including a year-to-date drop of 39.32%, Edelweiss has outperformed the Sensex over a three-year and five-year horizon, indicating resilience in a challenging market environment.