Is HDB FINANC SER overvalued or undervalued?

Aug 31 2025 08:09 AM IST
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As of August 29, 2025, HDB Financial Services is considered overvalued with a valuation grade of "expensive," featuring a PE ratio of 29.67 and an EV to EBITDA of 47.69, despite being lower than Bajaj Finance's PE of 31.3 but higher than Life Insurance's 11.08, and has seen a recent stock decline of 2.16%.
As of 29 August 2025, the valuation grade for HDB Financial Services has moved from does not qualify to expensive, indicating a significant shift in its valuation outlook. The company is currently assessed as overvalued. Key ratios include a PE ratio of 29.67, an EV to EBITDA of 47.69, and a ROE of 13.85%.

In comparison to its peers, HDB Financial Services' PE ratio is lower than Bajaj Finance's 31.3 but higher than Life Insurance's attractive valuation at 11.08. Additionally, while Bajaj Finserv also carries an expensive valuation with a PE of 32.09, the high EV to EBITDA ratio of HDB suggests that it is priced at a premium relative to its earnings potential. Recent stock performance shows a decline of 2.16% over the past week, compared to a 1.84% drop in the Sensex, reinforcing the notion of its overvaluation.
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