Is ICICI Lombard overvalued or undervalued?
As of February 20, 2024, ICICI Lombard General Insurance Co. Ltd. is considered very expensive and overvalued, with a PE ratio of 39.70 and an EV to EBITDA of 30.26, significantly higher than industry peers, despite a strong one-year return of 21.56% compared to the Sensex's 7.57%.
As of 20 February 2024, the valuation grade for ICICI Lombard General Insurance Co. Ltd. has moved from does not qualify to very expensive. The company is currently overvalued based on its financial metrics. Key ratios include a PE ratio of 39.70, a Price to Book Value of 7.15, and an EV to EBITDA of 30.26, which indicate a significant premium compared to typical industry standards.In comparison to its peers, ICICI Lombard's valuation stands out, with a PE ratio of 39.70 and an EV to EBITDA of 30.26, which are notably higher than many competitors in the insurance sector. This suggests that investors are paying a high price for earnings relative to its peers. Additionally, while the stock has outperformed the Sensex over the past year with a return of 21.56% compared to the Sensex's 7.57%, the elevated valuation metrics indicate that the stock may not be a prudent investment at its current price level.
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