Is CSL Finance overvalued or undervalued?

As of 14 August 2025, CSL Finance's valuation grade has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently assessed as undervalued. Key ratios supporting this conclusion include a PE ratio of 9.24, an EV to EBIT of 7.80, and a ROE of 13.83%.
In comparison to its peers, CSL Finance's PE ratio is significantly lower than that of Life Insurance, which stands at 11.53, and Bajaj Finance, which is at 30.73. This suggests that CSL Finance is trading at a discount relative to its industry peers, reinforcing the undervaluation narrative. Despite recent stock performance lagging behind the Sensex over the past year, the long-term perspective shows a remarkable 441.35% return over the last five years, further indicating potential for growth.