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 perceived value. 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, which are all elevated compared to industry norms.
In comparison to peers, Bajaj Finance has a much higher PE ratio of 38.09, while Life Insurance stands out with a very attractive EV to EBITDA of 0.37. This suggests that Edelweiss.Fin. is trading at a premium relative to its peers, which further supports the conclusion of overvaluation. Additionally, the company's stock has underperformed against the Sensex in recent periods, with a year-to-date return of -11.11% compared to the Sensex's 6.50%, reinforcing concerns about its current valuation.