Is India Finsec overvalued or undervalued?

As of 19 November 2025, the valuation grade for India Finsec has moved from expensive to very expensive. This indicates a significant increase in perceived valuation, suggesting that the company is currently overvalued. The key ratios reflect this assessment, with a PE ratio of 41.28, an EV to EBITDA ratio of 13.58, and a PEG ratio of 22.42, all of which are considerably higher than industry norms.
When compared to peers, India Finsec's valuation stands out as particularly high. For instance, Bajaj Finance has a PE ratio of 34.23 and an EV to EBITDA of 19.39, while Life Insurance operates at a much lower PE of 11.32 and EV to EBITDA of 9.35, highlighting the disparity in valuations within the sector. Additionally, India Finsec's recent stock performance, with a year-to-date return of 20.04% compared to the Sensex's 9.02%, may suggest speculative interest, but it does not justify the current high valuation levels. Overall, India Finsec appears to be overvalued in the current market context.