Is IBL Finance overvalued or undervalued?

As of 1 September 2025, the valuation grade for IBL Finance has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued. Key ratios reflect this assessment, with a PE ratio of 70.73, an EV to EBITDA of 48.12, and a PEG ratio of 20.16, all of which are considerably higher than industry norms.
In comparison to its peers, IBL Finance's valuation appears excessive; for instance, Bajaj Finance has a PE ratio of 31.81, while Life Insurance boasts a much lower PE of 11.16. This stark contrast highlights IBL Finance's overvaluation relative to its competitors. Additionally, despite a recent stock return of 24.7% year-to-date, which outperformed the Sensex's 4.15%, the elevated valuation metrics suggest caution for potential investors.