Is Aditya AMC overvalued or undervalued?

As of 27 October 2025, the valuation grade for Aditya AMC has moved from very expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 24.33, an EV to EBITDA of 21.14, and a Price to Book Value of 0.66, which suggest that the company's valuation is more aligned with its earnings and asset base compared to its previous status.
In comparison to peers, Aditya AMC's PE ratio is significantly lower than Bajaj Finance, which is very expensive at 38.72, and also lower than Bajaj Finserv at 36.44. Conversely, it is more favorable than Life Insurance, which has a PE of 11.65, indicating that while Aditya AMC is fairly valued, there are peers with both higher and lower valuations. Notably, Aditya AMC has outperformed the Sensex over the last year with a return of 11.21% compared to the Sensex's 6.77%, reinforcing its position in the market.