Is IIFL Capital overvalued or undervalued?

Jun 24 2025 08:02 AM IST
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As of June 23, 2025, IIFL Capital is considered overvalued with a PE ratio of 14.58 and an EV to EBITDA of 7.34, despite outperforming the Sensex with a 47% return over the past year, indicating a shift in valuation from fair to expensive.
As of 23 June 2025, the valuation grade for IIFL Capital has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a PE ratio of 14.58, an EV to EBITDA of 7.34, and a ROE of 28.41%.

In comparison to peers, IIFL Capital's PE ratio is higher than Life Insurance's 12.3 but significantly lower than Bajaj Finance's 34.19. The PEG ratio of 0.38 suggests potential growth relative to its price, yet the overall valuation metrics indicate that the stock is trading at a premium compared to its peers. Notably, IIFL Capital has outperformed the Sensex over the past year, with a return of 47% compared to the Sensex's 6.07%, which may reflect market optimism despite the current overvaluation.
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