Is ICICI Securities overvalued or undervalued?

As of 29 August 2025, the valuation grade for ICICI Securities has moved from risky to very expensive. This indicates a significant shift in the perception of the company's value, suggesting that it is currently overvalued. The company exhibits a PE ratio of 13.92, a Price to Book Value of 6.54, and an EV to EBITDA of 8.32, which are relatively high compared to its peers.
In comparison to its industry peers, Bajaj Finance has a much higher PE ratio of 31.3, while Life Insurance stands out with a lower PE of 11.08, indicating that ICICI Securities is positioned in the expensive range relative to some competitors. Additionally, while ICICI Securities has a solid ROE of 46.09% and a PEG ratio of 0.30, these figures do not sufficiently justify its current valuation level. Recent stock performance shows that ICICI Securities has outperformed the Sensex over the year with a return of 9.85% compared to the Sensex's decline of 2.83%, but this does not alter the conclusion that the stock is overvalued at present.