Is JM Financial overvalued or undervalued?

As of 19 August 2025, JM Financial's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company's current PE ratio stands at 16.30, while its EV to EBITDA ratio is 9.90, and the ROE is 8.44%. Compared to peers, Life Insurance is rated very attractive with a PE of 11.61, and Bajaj Finance is considered very expensive with a PE of 32.19, highlighting that JM Financial is on the higher end of the valuation spectrum within its industry.
Given these metrics and the recent grade change, JM Financial appears to be overvalued. The company's strong stock performance, with a year-to-date return of 45.41% compared to the Sensex's 4.49%, further emphasizes this valuation concern, suggesting that the market may have priced in excessive growth expectations.