Is Emerald Finance overvalued or undervalued?

Oct 11 2025 08:05 AM IST
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As of October 10, 2025, Emerald Finance is considered overvalued with a PE ratio of 26.74 and has underperformed the Sensex year-to-date, raising concerns about its sustainability despite a strong three-year return of 237.65%.
As of 10 October 2025, Emerald Finance has moved from a fair to an expensive valuation grade. The company is currently overvalued, with a PE ratio of 26.74, an EV to EBIT of 16.32, and an EV to EBITDA of 16.24. In comparison to its peers, Bajaj Finance has a significantly higher PE ratio of 36.56, while Life Insurance stands out with a much lower PE ratio of 11.65, indicating a stark contrast in valuation within the sector.

Emerald Finance's financial metrics suggest it is trading at a premium compared to its competitors, which raises concerns about its sustainability at current price levels. Additionally, while the stock has shown a strong return of 237.65% over the past three years, it has underperformed the Sensex year-to-date, with a decline of 36.17% compared to the Sensex's gain of 5.58%. This performance further reinforces the notion that the stock is overvalued at present.
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