Is ICICI Securities overvalued or undervalued?

Aug 25 2025 08:09 AM IST
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As of August 22, 2025, ICICI Securities is considered very expensive and overvalued with a PE ratio of 13.92, a Price to Book Value of 6.54, and an EV to EBITDA of 8.32, despite strong financial metrics and 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. The company is currently considered overvalued based on its financial metrics. The PE ratio stands at 13.92, while the Price to Book Value is notably high at 6.54, and the EV to EBITDA ratio is 8.32.

In comparison to its peers, ICICI Securities' PE ratio is higher than that of Life Insurance, which has a PE of 11.55 and is rated very attractive. Additionally, Bajaj Finance, another peer, has a significantly higher PE of 31.91 and is also deemed very expensive. Despite a strong ROE of 46.09% and a solid ROCE of 31.61%, the overall valuation suggests that ICICI Securities is not a favorable investment at its current price of 897.45, especially when compared to the performance of the Sensex, where the stock has outperformed over the past year with a return of 12.73% against the Sensex's 0.31%.
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