Is ICICI Securities overvalued or undervalued?

As of 28 August 2025, the valuation grade for ICICI Securities has moved from very expensive to risky. The company is currently assessed as overvalued. Key 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 while the earnings growth potential is high relative to its price, the overall valuation remains elevated compared to peers.
In comparison to its peers, ICICI Securities has a higher PE ratio than Life Insurance, which stands at 11.27, and a lower EV to EBITDA than Bajaj Finance at 17.83. The company's return on equity (ROE) is notably strong at 46.09%, indicating effective management of equity capital. Despite its recent stock performance showing a year-to-date return of 4.82% compared to the Sensex's 2.48%, the overall valuation metrics suggest that ICICI Securities is not positioned favorably in the current market landscape.