Is IIFL Finance overvalued or undervalued?

Oct 11 2025 08:07 AM IST
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As of October 10, 2025, IIFL Finance is considered overvalued with a PE ratio of 22.91 and an EV to EBITDA of 11.76, despite outperforming the Sensex year-to-date, indicating a shift in market perception from fair to very expensive.
As of 10 October 2025, IIFL Finance's valuation grade has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 22.91, an EV to EBITDA of 11.76, and a ROCE of 9.10%.

In comparison to its peers, IIFL Finance's PE ratio is notably lower than Bajaj Finance's 36.56 but higher than Life Insurance's attractive valuation of 11.65. The PEG ratio of IIFL Finance stands at 0.00, which is not comparable to Bajaj Finance's 2.27, suggesting that the market may be pricing in future growth differently across these companies. Despite IIFL Finance's recent stock performance outpacing the Sensex with a year-to-date return of 18.59% compared to the Sensex's 5.58%, the overall valuation suggests caution for potential investors.
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