Is Arman Financial overvalued or undervalued?

Nov 13 2025 08:07 AM IST
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As of November 12, 2025, Arman Financial is considered overvalued with a PE ratio of 275.99, despite a slight improvement in valuation grade, and it significantly lags behind peers like Bajaj Finance and Life Insurance, as well as the Sensex over the past three years.
As of 12 November 2025, Arman Financial's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued based on its current metrics, with a PE ratio of 275.99, an EV to EBIT of 10.44, and an EV to EBITDA of 10.36. These ratios suggest that the stock is trading at a significant premium compared to its earnings and cash flows.

In comparison to peers, Arman Financial's valuation stands out unfavorably; for instance, Bajaj Finance has a PE ratio of 34.41, while Life Insurance boasts a much lower PE of 11.14, highlighting the disparity in valuation within the sector. Additionally, despite a strong year-to-date return of 30.73%, the stock's performance over the last three years has lagged behind the Sensex, which returned 36.69%. Overall, Arman Financial is assessed as overvalued in the current market environment.
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