Is JM Financial overvalued or undervalued?

As of 7 November 2025, JM Financial's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, particularly when analyzing its key financial ratios. The PE ratio stands at 13.31, while the price-to-book value is exceptionally low at 0.15, suggesting that the market may not be fully recognizing the company's potential. Additionally, the EV to EBITDA ratio is at -10.42, which further highlights the undervaluation relative to its earnings potential.
In comparison to its peers, JM Financial's valuation appears favorable. For instance, Bajaj Finance is categorized as very expensive with a PE ratio of 38.09, while Life Insurance is rated very attractive with a PE of 11.44. This positions JM Financial competitively within the industry, especially given its attractive valuation metrics. Notably, despite a recent decline in stock price, the company has outperformed the Sensex over the year with a return of 7.25% compared to the Sensex's 4.62%, reinforcing the argument for its undervaluation.