Is ICICI Securities overvalued or undervalued?

As of 22 August 2025, the valuation grade for ICICI Securities has moved from risky to very expensive. The company is currently overvalued based on its financial ratios and peer comparisons. Notable ratios include a PE Ratio of 13.92, an EV to EBITDA of 8.32, and a PEG Ratio of 0.30, which suggests that despite a strong return on equity (ROE) of 46.09%, the stock price does not justify its earnings growth potential.
In comparison to peers, ICICI Securities' valuation appears elevated. For instance, Life Insurance, categorized as very attractive, has a PE Ratio of 11.55 and an EV to EBITDA of 8.99, indicating a more favorable valuation. Bajaj Finance, also very expensive, has a significantly higher PE Ratio of 31.91, but its valuation metrics suggest it is priced for growth that may not be sustainable. While ICICI Securities has outperformed the Sensex over the past year with a return of 12.73% compared to the Sensex's 0.31%, the current valuation indicates that investors may want to exercise caution.