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 shift in its perceived value. The company is currently overvalued, with a PE ratio of 45.35, a Price to Book Value of 1.68, and an EV to EBITDA of 10.70. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, IFCI's valuation stands out as notably high; for instance, Bajaj Finance has a PE ratio of 38.09, while Life Insurance is valued at a much lower EV to EBITDA of 11.44. Additionally, the PEG ratio for IFCI is 0.36, which, despite being low, does not sufficiently justify the high PE ratio. The recent stock performance has been underwhelming, with a year-to-date return of -12.84%, contrasting sharply with the Sensex's gain of 6.50% over the same period, reinforcing the notion that IFCI is overvalued.