Is Cholaman.Inv.&Fn overvalued or undervalued?

As of 18 November 2025, the valuation grade for Cholaman.Inv.&Fn has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently assessed as overvalued. Key ratios include a PE ratio of 30.78, an EV to EBITDA of 16.22, and a PEG ratio of 1.53, all of which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Cholaman.Inv.&Fn's PE ratio is lower than Bajaj Finance's 34.46 but significantly higher than Life Insurance's 11.34, which is categorized as very attractive. This disparity highlights the overvaluation of Cholaman.Inv.&Fn within its industry. While the stock has outperformed the Sensex with a year-to-date return of 42.84% compared to the Sensex's 8.36%, the current valuation metrics suggest that investors may be paying too much for future growth prospects.