Is IFL Enterprises overvalued or undervalued?

As of 13 June 2025, the valuation grade for IFL Enterprises has moved from attractive to expensive. The company appears to be overvalued based on its current financial ratios, including a PE ratio of 45.05, an EV to EBITDA of 71.57, and a PEG ratio of 27.64. These figures suggest that the stock is priced significantly higher than its earnings growth potential.
In comparison to its peers, IFL Enterprises stands out with a much higher PE ratio than PTC India, which has a PE of 9.25 and is classified as very attractive. Additionally, MMTC, categorized as risky, has a PE ratio of 112.95. The notable divergence in valuation metrics indicates that IFL Enterprises is not only overvalued relative to its peers but also has a lower return on equity (ROE) of 3.92% and return on capital employed (ROCE) of 1.83%, further supporting the overvaluation assessment. Despite a strong recent performance with a 63.24% return over the past month compared to a slight decline in the Sensex, the overall valuation suggests caution for potential investors.