Is Cholaman.Inv.&Fn overvalued or undervalued?

As of 7 November 2025, Cholaman.Inv.&Fn has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 30.90, an EV to EBITDA of 11.50, and a Price to Book Value of 0.55.
In comparison to peers, Bajaj Finance is classified as very expensive with a PE ratio of 38.09, while Life Insurance stands out as very attractive with a PE of 11.44. Cholaman.Inv.&Fn's valuation appears less favorable relative to its peers, suggesting it may not justify its current price level. Notably, the company's stock has outperformed the Sensex significantly over the past year, with a return of 32.46% compared to the Sensex's 4.62%, which may have contributed to its elevated valuation.