Is JM Financial overvalued or undervalued?

Sep 04 2025 08:02 AM IST
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As of September 3, 2025, JM Financial is considered overvalued with a PE ratio of 16.38, an EV to EBITDA of 9.94, and a ROE of 8.44%, despite outperforming the Sensex with a year-to-date return of 46.41%.
As of 3 September 2025, JM Financial's valuation grade has moved from fair to expensive, indicating a shift in its perceived market value. The company is currently considered overvalued. Key ratios include a PE ratio of 16.38, an EV to EBITDA of 9.94, and a ROE of 8.44%.

In comparison to its peers, JM Financial's PE ratio is significantly lower than that of Bajaj Finance, which stands at 32.03, and higher than Life Insurance, which is valued at 11.31. This suggests that while JM Financial is priced higher relative to its earnings than some competitors, it still lags behind others in the same sector. Notably, JM Financial has outperformed the Sensex in various time frames, with a year-to-date return of 46.41% compared to the Sensex's 3.11%, reinforcing the narrative of its current overvaluation.
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