Is CSL Finance overvalued or undervalued?

As of 23 October 2025, CSL Finance has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, with a PE ratio of 8.65, an EV to EBIT of 7.54, and a PEG ratio of 0.94, indicating strong earnings potential relative to its price. In comparison to its peers, Bajaj Finance is deemed very expensive with a PE ratio of 39.07, while Life Insurance, classified as very attractive, has a PE ratio of 11.68, further supporting CSL Finance's undervaluation.
Despite recent stock performance showing a decline of 20.45% over the past year compared to a 5.59% increase in the Sensex, the company's solid fundamentals, including a ROCE of 13.89% and a ROE of 13.83%, suggest that it is well-positioned for future growth. Given these factors, CSL Finance presents a compelling investment opportunity in the current market landscape.