Is IIFL Finance overvalued or undervalued?

Nov 03 2025 08:05 AM IST
share
Share Via
As of October 31, 2025, IIFL Finance is considered overvalued with a valuation grade of expensive, a PE ratio of 26.55, and has outperformed the Sensex year-to-date, despite its higher valuation compared to peers like Bajaj Finance and Life Insurance.
As of 31 October 2025, IIFL Finance's valuation grade has moved from very expensive to expensive, indicating a shift in market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 26.55, an EV to EBIT of 4.16, and a Price to Book Value of 0.18, which reflect a premium compared to its peers.

In comparison to its industry, Bajaj Finance is categorized as very expensive with a PE ratio of 37.23, while Life Insurance stands out as very attractive with a PE of 11.62. This context highlights IIFL Finance's relatively high valuation amidst peers. Notably, IIFL Finance has outperformed the Sensex in various time frames, including a year-to-date return of 29.48% compared to the Sensex's 7.42%, further emphasizing its current overvaluation status.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News