Is GSB Finance overvalued or undervalued?
As of June 30, 2025, GSB Finance is fairly valued with a PE ratio of 16.35, favorable compared to peers like Bajaj Finance and Bajaj Finserv, despite a year-to-date return of -44.07%, indicating potential for value recovery.
As of 30 June 2025, GSB Finance has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 16.35, an EV to EBIT of 16.18, and a Price to Book Value of 1.14. Compared to its peers, GSB Finance's valuation metrics are more favorable than Bajaj Finance, which has a PE ratio of 34.97, and Bajaj Finserv, with a PE of 37. In the context of the broader market, GSB Finance's recent stock performance has been mixed, with a year-to-date return of -44.07%, contrasting with a 7.00% return for the Sensex. This underperformance highlights the potential for value recovery as the company stabilizes within its industry. Overall, GSB Finance presents a fair investment opportunity in the current market landscape.
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