Is Edelweiss.Fin. overvalued or undervalued?

Aug 26 2025 08:01 AM IST
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As of August 25, 2025, Edelweiss.Fin. is considered overvalued with a PE ratio of 23.63 and has underperformed in the long term, making it a less attractive investment compared to its peers.
As of 25 August 2025, Edelweiss.Fin. has moved from fair to expensive in its valuation grade. The company is currently overvalued, with a PE ratio of 23.63, a Price to Book Value of 2.17, and an EV to EBITDA of 6.93. In comparison to its peers, Life Insurance has a significantly lower PE ratio of 11.61, while Bajaj Finance stands at 32.11, indicating that Edelweiss.Fin. is priced higher relative to its earnings potential.

The company's recent performance shows a 1-week stock return of 5.43%, outperforming the Sensex's 0.45% return, but it has struggled over the longer term with a year-to-date decline of 18.50% compared to the Sensex's 4.48% gain. Given these factors, the current valuation suggests that Edelweiss.Fin. may not be an attractive investment at this time.
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