Is Edelweiss.Fin. overvalued or undervalued?

As of 8 August 2025, the valuation grade for Edelweiss.Fin. has moved from attractive to expensive, indicating a shift in perception regarding its market value. The company is currently assessed as overvalued. Key ratios include a PE ratio of 22.22, an EV to EBITDA of 6.75, and a Price to Book Value of 2.04, which suggest that the stock is priced higher relative to its earnings and book value compared to its peers.
In comparison to notable competitors, Life Insurance has a PE ratio of 11.83 and an EV to EBITDA of 9.24, while Bajaj Finance stands at a PE of 31.31 and an EV to EBITDA of 17.85, highlighting that Edelweiss.Fin. is trading at a premium relative to some peers. Additionally, the company's recent stock performance has underperformed the Sensex, particularly in the year-to-date period where it has declined by 22.82% compared to a modest gain of 2.20% for the Sensex, reinforcing the view that the stock may be overvalued at its current price of 95.55.