Is IFL Enterprises overvalued or undervalued?

As of 9 July 2025, the valuation grade for IFL Enterprises has moved from expensive to fair. The company is currently fairly valued, with a PE ratio of 45.45, an EV to EBITDA ratio of 72.20, and a Price to Book Value of 1.78. In comparison to its peers, IFL Enterprises stands out against Elitecon International and Lloyds Enterprises, both of which are categorized as very expensive with PE ratios of 204.06 and 198.73, respectively.
Despite the fair valuation, IFL Enterprises shows some concerning financial metrics, such as a low ROCE of 1.83% and ROE of 3.92%. The company has outperformed the Sensex in the year-to-date period with a return of 15.46% compared to the Sensex's 6.91%, but it has underperformed over longer time frames, notably a 48.05% decline over three years. Overall, while the current valuation appears reasonable, the underlying financial performance warrants caution.