Is IFCI overvalued or undervalued?

As of 7 November 2025, the valuation grade for IFCI has moved from expensive to very expensive, indicating a significant increase in perceived value. The company is currently overvalued based on its financial ratios, with a PE ratio of 45.35, an EV to EBITDA ratio of 10.70, and a PEG ratio of 0.36. These figures suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, IFCI's valuation appears excessive, especially when contrasted with Bajaj Finance, which has a PE ratio of 38.09, and Life Insurance, which is valued attractively with a PE of 11.44. This disparity highlights that IFCI's current valuation does not align well with industry standards. Furthermore, the company's recent stock performance has lagged behind the Sensex, with a year-to-date decline of 12.84% compared to a 6.50% gain in the index, reinforcing the notion that IFCI is overvalued.