Is KIFS Financial overvalued or undervalued?

Nov 08 2025 08:08 AM IST
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As of November 7, 2025, KIFS Financial is considered overvalued with a PE ratio of 21.80, significantly higher than its peers, indicating a premium that may not be justified given its mixed recent performance and competitive landscape.
As of 7 November 2025, KIFS Financial has moved from a fair to an expensive valuation grade. The company is currently considered overvalued based on its financial ratios. The PE ratio stands at 21.80, while the Price to Book Value is 3.15, and the EV to EBITDA is 10.81, indicating a premium compared to industry norms.

In comparison to its peers, KIFS Financial's PE ratio is significantly higher than Life Insurance, which has a PE of 11.44, and even higher than Shriram Finance at 17.7. This suggests that KIFS is trading at a premium relative to some of its more attractively valued competitors. Additionally, while KIFS has shown strong returns over the past five years at 279.98%, its recent performance against the Sensex has been mixed, with a 1Y return of -4.57% compared to the Sensex's 4.62%. Overall, the current valuation reflects a premium that may not be justified given the competitive landscape.
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