Is CSL Finance overvalued or undervalued?

As of 10 October 2025, CSL Finance's valuation grade has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently assessed as undervalued, with a PE ratio of 8.86, an EV to EBITDA ratio of 7.55, and a PEG ratio of 0.96. These ratios suggest that CSL Finance is trading at a discount compared to its peers. In comparison to its industry, Bajaj Finance is categorized as very expensive with a PE ratio of 36.56, while Life Insurance is seen as very attractive with a PE ratio of 11.65. This highlights CSL Finance's relative valuation advantage within the non-banking financial company sector. Additionally, despite recent underperformance with a year-to-date return of -8.07% compared to the Sensex's 5.58%, the long-term performance remains strong, with a five-year return of 312.80%.