Is Aditya Birla Cap overvalued or undervalued?

As of 15 October 2025, the valuation grade for Aditya Birla Capital has moved from fair to expensive, indicating a shift in perception regarding its market valuation. The company appears overvalued at this time, with a PE ratio of 23.28, an EV to EBIT ratio of 14.60, and an EV to EBITDA ratio of 14.34. In comparison to its peers, Bajaj Finance is categorized as very expensive with a PE ratio of 37.84, while Life Insurance is considered very attractive with a PE ratio of 11.69.
The valuation metrics suggest that Aditya Birla Capital is trading at a premium relative to its industry peers, with its PEG ratio notably at 0.00, which raises concerns about growth expectations. Additionally, the company's recent stock performance has significantly outpaced the Sensex, with a year-to-date return of 70.55% compared to the Sensex's 5.72%, further complicating the valuation narrative. Overall, the combination of high valuation ratios and peer comparisons supports the conclusion that Aditya Birla Capital is currently overvalued.