Is ICICI Lombard overvalued or undervalued?

As of 10 November 2025, ICICI Lombard's valuation grade has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios highlight this assessment: the PE ratio stands at 35.99, the EV to EBIT ratio is 27.05, and the PEG ratio is 1.44, all of which suggest a premium valuation compared to its peers.
In comparison, Bajaj Finance, also rated as very expensive, has a higher PE ratio of 38.76, while Life Insurance, rated very attractive, shows a much lower PE of 11.14, indicating a stark contrast in valuation within the industry. Additionally, ICICI Lombard's return over the past year at 6.24% slightly outperformed the Sensex's return of 5.09%, but this does not mitigate its current overvaluation status. Overall, the metrics and peer comparisons strongly suggest that ICICI Lombard is overvalued in the current market landscape.