Is AU Small Finance overvalued or undervalued?

Oct 15 2025 08:08 AM IST
share
Share Via
As of October 14, 2025, AU Small Finance is considered very expensive and overvalued with a PE Ratio of 26.40, a Price to Book Value of 3.38, and a PEG Ratio of 0.98, trading at a premium compared to peers like HDFC Bank and ICICI Bank, despite a strong year-to-date return of 38.5% that still lags behind the Sensex's 4.98%.
As of 14 October 2025, the valuation grade for AU Small Finance has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE Ratio of 26.40, a Price to Book Value of 3.38, and a PEG Ratio of 0.98.

In comparison to its peers, HDFC Bank has a PE of 21.65, while ICICI Bank stands at 20.21, both of which suggest that AU Small Finance is trading at a premium relative to these established banks. Additionally, while the company has shown strong returns year-to-date at 38.5%, it still lags behind the Sensex's 4.98% during the same period. This further reinforces the notion that AU Small Finance is overvalued in the current market context.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News