Is HDB FINANC SER overvalued or undervalued?

Oct 12 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 of 46.59, underperforming the Sensex and compared to peers like Bajaj Finance and Life Insurance.
As of 10 October 2025, the valuation grade for HDB Financial Services has moved from fair to expensive, indicating a shift in perception regarding its market valuation. The company is currently considered overvalued. Key ratios include a PE Ratio of 28.08, an EV to EBITDA of 46.59, and a ROE of 13.85%.

In comparison to its peers, HDB Financial Services' PE ratio is lower than Bajaj Finance's 36.56 but higher than Life Insurance's 11.65, which is categorized as very attractive. The EV to EBITDA ratio also significantly exceeds that of Life Insurance, further emphasizing the premium valuation of HDB Financial Services. Additionally, the company's stock has underperformed relative to the Sensex over the past week and month, with returns of -2.72% and -6.09%, respectively, reinforcing the notion of its overvaluation.
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