Is Fedbank Financi. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Fedbank Financi. has moved from very attractive to attractive. The company is currently fairly valued, with a PE ratio of 24.34, an EV to EBITDA of 12.54, and a ROE of 9.03%. In comparison, Bajaj Finance, considered very expensive, has a PE ratio of 38.21, while Life Insurance, rated very attractive, has an EV to EBITDA of 8.94.
Despite the recent downgrade in valuation grade, Fedbank Financi. has demonstrated strong performance with a year-to-date return of 45.23%, significantly outperforming the Sensex's 7.44%. The company's valuation metrics suggest it is positioned competitively within its peer group, indicating that it is fairly valued at this time.