Is IFCI overvalued or undervalued?

As of 17 September 2025, the valuation grade for IFCI has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued. Key ratios reveal a PE ratio of 49.35, an EV to EBITDA of 11.78, and a PEG ratio of 0.39, all of which suggest that the stock is priced at a premium compared to its earnings growth potential.
In comparison to peers, Bajaj Finance has a PE ratio of 35.94 and an EV to EBITDA of 19.46, while Life Insurance boasts a much lower PE of 11.52 and an EV to EBITDA of 8.96, highlighting the relative overvaluation of IFCI. Despite a strong performance over the past three years with a return of 448.61%, the recent stock performance has lagged behind the Sensex, with a year-to-date decline of 5.14% compared to the Sensex's gain of 5.83%.