Is ICICI Lombard overvalued or undervalued?

As of 6 November 2025, the valuation grade for ICICI Lombard has moved from very expensive to expensive. The company is currently considered overvalued based on its financial ratios. The PE ratio stands at 35.56, while the EV to EBITDA ratio is 26.72. Additionally, the Price to Book Value is notably low at 0.62, indicating a potential mispricing in the market.
When compared to peers, ICICI Lombard's PE ratio is higher than Bajaj Finserv's 34.67 and significantly above Life Insurance's attractive PE of 11.62. The PEG ratio of 1.42 also suggests that the stock may not be justified at its current price level. Despite recent performance showing a 3.88% return over the past month compared to the Sensex's 1.86%, the overall valuation metrics indicate that ICICI Lombard is overvalued in the current market environment.