Is JM Financial overvalued or undervalued?

Aug 22 2025 08:01 AM IST
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As of August 21, 2025, JM Financial is considered overvalued with a PE Ratio of 16.45, higher than its peers like Life Insurance at 11.62, despite outperforming the Sensex with a year-to-date return of 46.64%.
As of 21 August 2025, JM Financial's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE Ratio of 16.45, an EV to EBIT of 10.22, and an EV to EBITDA of 9.96, which are relatively high compared to its peers.

In comparison to similar companies, JM Financial's PE Ratio is higher than Life Insurance, which stands at 11.62, and significantly lower than Bajaj Finance at 31.94. This suggests that JM Financial is trading at a premium relative to some of its peers, reinforcing the view of overvaluation. Additionally, JM Financial's stock has outperformed the Sensex with a year-to-date return of 46.64% compared to the Sensex's 4.94%, further highlighting its current market position.
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