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, especially when compared to its peers. Key ratios include a PE Ratio of 23.66, an EV to EBIT of 13.38, and a PEG Ratio of 0.29, which suggests that the stock is trading at a reasonable price relative to its growth potential.
In comparison to its peers, Emerald Finance's valuation appears favorable. For instance, Bajaj Finance is categorized as very expensive with a PE Ratio of 38.21, while Life Insurance is very attractive with a PE Ratio of 11.49. This positions Emerald Finance as a more appealing investment option within the Non-Banking Financial Company (NBFC) sector. Notably, despite recent underperformance with a year-to-date return of -35.15% compared to the Sensex's 7.44%, the long-term performance over three years shows a significant return of 195.80%, reinforcing the potential for recovery and growth.