Is Emerald Finance overvalued or undervalued?

As of 17 October 2025, the valuation grade for Emerald Finance has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE Ratio of 23.66, an EV to EBITDA of 13.32, and a PEG Ratio of 0.29, which suggests that the stock is priced favorably relative to its growth potential.
In comparison to its peers, Emerald Finance's PE Ratio is significantly lower than Bajaj Finance's 38.21 and Bajaj Finserv's 34.94, both of which are categorized as expensive. Additionally, its PEG Ratio of 0.29 is much more attractive than that of Bajaj Finance, which stands at 2.37. Despite recent underperformance against the Sensex on a year-to-date basis, where Emerald Finance has declined by 35.15% compared to the Sensex's 7.44% gain, the overall valuation metrics suggest that the company presents a compelling investment opportunity at its current price of 81.64.