Is Freedom Holding Corp. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Freedom Holding Corp. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, as evidenced by its P/E ratio of 29, which is substantially higher than its peers, such as Jefferies Financial Group, Inc. at 29.53 and Tradeweb Markets, Inc. at 47.50. Additionally, Freedom Holding Corp. has a Price to Book Value of 7.50 and an EV to EBITDA of 9.34, both of which suggest a premium valuation compared to the industry standards.
In terms of performance, Freedom Holding Corp. has demonstrated impressive returns, with a 1Y return of 73.62% compared to the S&P 500's 17.14%, and a staggering 5Y return of 573.26% against the S&P 500's 96.61%. This strong performance may contribute to its elevated valuation, but the current ratios indicate that it is priced for perfection, making it a risky investment at this level.