Is Edelweiss.Fin. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Edelweiss.Fin. has moved from expensive to very expensive, indicating a significant shift in its valuation outlook. The company is currently considered overvalued. Key ratios include a PE ratio of 25.61, an EV to EBITDA of 7.18, and a Price to Book Value of 2.35, all of which suggest that the stock is priced at a premium compared to its earnings and book value.
In comparison to peers, Bajaj Finance has a much higher PE ratio of 38.09, while Life Insurance stands out with a very attractive PE of 11.44, highlighting the disparity in valuation within the industry. The recent stock performance shows that Edelweiss.Fin. has underperformed the Sensex, with a year-to-date return of -11.11% compared to the Sensex's 6.50%, further reinforcing the notion that the stock is overvalued in its current state.