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 perception regarding the company's valuation. Based on the analysis, ICICI Securities is currently overvalued. Key ratios include a PE ratio of 13.92, a Price to Book Value of 6.54, and an EV to EBITDA of 8.32, which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, ICICI Securities has a lower PE ratio than Bajaj Finance, which stands at 31.3, but is higher than Life Insurance's PE of 11.08, indicating that while it may be more attractive than some competitors, it remains overvalued relative to its fundamental metrics. Additionally, the company's PEG ratio of 0.30 suggests that growth expectations might not justify its current price. Notably, ICICI Securities has outperformed the Sensex over the past year with a return of 9.85% compared to the Sensex's decline of 2.83%, but this does not alter the conclusion of overvaluation.