Is HDB FINANC SER overvalued or undervalued?
As of November 10, 2025, HDB Financial Services is considered overvalued with a PE ratio of 27.86, despite being less expensive than Bajaj Finance, but significantly higher than Life Insurance, and its low dividend yield of 0.27% and ROE of 1.13% further indicate overvaluation.
As of 10 November 2025, the valuation grade for HDB Financial Services has moved from fair to expensive. The company is currently overvalued based on its financial ratios, with a PE ratio of 27.86, an EV to EBIT of 47.04, and an EV to EBITDA of 44.11. These figures suggest that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.In comparison to its peers, HDB Financial Services has a lower PE ratio than Bajaj Finance, which stands at 38.76, indicating that HDB is less expensive relative to Bajaj. However, it is significantly higher than Life Insurance, which boasts a PE of 11.14, highlighting a notable disparity in valuation within the sector. Additionally, the company's dividend yield of 0.27% and ROE of 1.13% further support the conclusion of overvaluation, especially when juxtaposed with the broader market performance, where HDB has shown a slight gain of 0.93% over the past week compared to a decline in the Sensex.
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