Is HDB FINANC SER overvalued or undervalued?

Oct 11 2025 08:12 AM IST
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As of October 10, 2025, HDB Financial Services is considered overvalued with a PE ratio of 28.08 and an EV to EBITDA ratio of 46.59, especially when compared to peers like Bajaj Finance and Life Insurance, and its recent stock performance has underperformed the Sensex.
As of 10 October 2025, the valuation grade for HDB Financial Services has moved from fair to expensive. The company is currently considered overvalued based on its financial ratios and peer comparisons. Key ratios include a PE ratio of 28.08, an EV to EBITDA ratio of 46.59, and a ROE of 13.85%.

When compared to its peers, HDB Financial Services stands out as expensive, particularly against Bajaj Finance, which has a PE ratio of 36.56, and Life Insurance, which is valued very attractively with a PE of 11.65. The company's recent stock performance has lagged behind the Sensex, with a 1-week return of -2.72% compared to the Sensex's 1.59%, reinforcing the notion of overvaluation.
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