Is IFCI overvalued or undervalued?

As of 13 November 2025, the valuation grade for IFCI has moved from expensive to fair. Based on the analysis, IFCI is currently fairly valued. Key ratios include a PE ratio of 38.69, an EV to EBITDA of 10.08, and a PEG ratio of 0.20, which indicates strong growth potential relative to its price.
When compared to peers, IFCI's PE ratio is higher than Bajaj Finance's 34.18 but lower than Life Insurance's attractive valuation metrics. Additionally, IRFC, which is also rated fair, has a significantly lower PE ratio of 23.09, suggesting that IFCI may be priced at a premium compared to some of its peers. Despite recent underperformance relative to the Sensex over the past year, where IFCI returned -7.86% compared to the Sensex's 8.74%, its valuation appears justified given its growth prospects.