Is ICICI Securities overvalued or undervalued?

As of 29 August 2025, the valuation grade for ICICI Securities has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently considered 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 company has strong earnings growth potential, its current price does not reflect this adequately compared to its earnings.
In comparison to its peers, Bajaj Finance has a much higher PE ratio of 31.3, while Life Insurance stands at a more attractive PE of 11.08. This highlights that ICICI Securities is priced higher than some of its more favorable peers, suggesting it may not be justified given its current performance metrics. Additionally, the company's stock has outperformed the Sensex over the past year, returning 9.85% compared to the Sensex's decline of 2.83%, but this does not negate the overall overvaluation assessment.