Is IFCI overvalued or undervalued?

As of 7 November 2025, IFCI's valuation grade has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently overvalued, as evidenced by its high PE ratio of 45.35, an EV to EBITDA 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 metrics stand out unfavorably; for instance, Bajaj Finance has a PE ratio of 38.09, while Life Insurance boasts a much lower EV to EBITDA of 11.44, highlighting the disparity in valuation. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -12.84%, significantly lagging behind the Sensex's 6.50% return during the same period. This further reinforces the notion that IFCI is overvalued in the current market environment.