Is JM Financial overvalued or undervalued?

Nov 06 2025 08:07 AM IST
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As of November 4, 2025, JM Financial is considered overvalued with a PE ratio of 14.33, an EV to EBITDA of 9.04, and a ROE of 8.44%, despite outperforming the Sensex with a 27.80% year-to-date return.
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 is currently overvalued. Key financial ratios include a PE ratio of 14.33, an EV to EBITDA of 9.04, and a ROE of 8.44%.

When compared to peers, JM Financial's PE ratio is significantly lower than that of Bajaj Finance, which stands at 37.67, and higher than Life Insurance, which has a PE of 11.76. This suggests that while JM Financial is relatively less expensive than some peers, it is still priced at a premium compared to others in the industry. Notably, JM Financial has outperformed the Sensex with a year-to-date return of 27.80% compared to the Sensex's 6.81%, but this strong performance does not justify its current overvaluation.
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