Is IIFL Finance overvalued or undervalued?

As of 9 October 2025, the valuation grade for IIFL Finance has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE Ratio of 23.13, an EV to EBITDA of 11.79, and a ROE of 7.78%.
In comparison with peers, IIFL Finance's valuation is more attractive than Bajaj Finance, which is rated very expensive with a PE of 36.57, and Bajaj Finserv, also expensive with a PE of 33.8. Notably, IIFL Finance's PEG Ratio stands at 0.00, which indicates potential for growth relative to its price. Additionally, the company's recent stock performance has outpaced the Sensex, with a year-to-date return of 19.71% compared to the Sensex's 5.16%, reinforcing its fair valuation status.