Is IIFL Capital overvalued or undervalued?

Jul 23 2025 08:02 AM IST
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As of July 22, 2025, IIFL Capital is considered overvalued with a PE Ratio of 14.19, an EV to EBITDA of 7.06, and a ROE of 28.41%, despite a strong 1-year return of 74.63% compared to the Sensex's 2.09%.
As of 22 July 2025, IIFL Capital's valuation grade has moved from fair to expensive, indicating a shift in its perceived market value. The company is currently considered overvalued. Key ratios include a PE Ratio of 14.19, an EV to EBITDA of 7.06, and a ROE of 28.41%.

In comparison to its peers, IIFL Capital's PE Ratio is higher than Life Insurance, which stands at 12.03, and significantly lower than Bajaj Finance, which is at 35.57. The company's recent stock performance shows a 1-year return of 74.63%, outperforming the Sensex's 2.09% return, but this does not mitigate the overvaluation indicated by its current metrics.
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