Is ICICI Securities overvalued or undervalued?
As of August 22, 2025, ICICI Securities is considered very expensive and overvalued with a PE ratio of 13.92, an EV to EBITDA of 8.32, and a high ROE of 46.09%, despite outperforming the Sensex over the past year.
As of 22 August 2025, the valuation grade for ICICI Securities has moved from risky to very expensive, indicating a significant shift in perception. The company is currently considered overvalued. Key ratios include a PE ratio of 13.92, an EV to EBITDA of 8.32, and a ROE of 46.09%. When compared to peers, ICICI Securities' PE ratio is higher than Life Insurance, which stands at 11.55, and Bajaj Finance at 31.91, both of which are in different valuation categories. The PEG ratio of ICICI Securities at 0.30 suggests potential growth, but the overall valuation is not justified given its current price of 897.45. Additionally, while ICICI Securities has outperformed the Sensex over the past year with a return of 12.73% compared to the Sensex's 0.31%, this does not mitigate the concerns regarding its high valuation.
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