Is JM Financial overvalued or undervalued?

As of 4 November 2025, JM Financial's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company appears to be overvalued at its current price of 165.50, especially when considering its PE ratio of 14.33, EV to EBITDA of 9.04, and ROE of 8.44%.
In comparison to its peers, JM Financial's valuation metrics are less favorable; for instance, Bajaj Finance is categorized as very expensive with a PE ratio of 37.67, while Life Insurance stands out as very attractive with a PE ratio of 11.76. This suggests that JM Financial's valuation does not justify its current price relative to its peers. Additionally, despite a strong year-to-date return of 27.80%, the recent performance against the Sensex shows a decline of 2.96% over the past week, further supporting the notion that the stock may be overvalued.