Is KIFS Financial overvalued or undervalued?

As of 7 November 2025, KIFS Financial's valuation grade has moved from fair to expensive, indicating a shift in its perceived value. The company is currently considered overvalued based on its key financial ratios, including a PE Ratio of 21.80, an EV to EBITDA of 10.81, and a PEG Ratio of 1.62. Compared to its peers, KIFS Financial's valuation appears high; for instance, Bajaj Finance has a significantly higher PE Ratio of 38.09, while Life Insurance shows a much lower PE Ratio of 11.44, highlighting the disparity within the sector.
In terms of performance, KIFS Financial's recent stock returns have outpaced the Sensex in the short term, with a 1-week return of 16.94% compared to the Sensex's -0.86%. However, the longer-term view shows a decline of 4.57% over the past year against the Sensex's 4.62% gain, reinforcing the notion that the stock may not be a sound investment at its current price of 166.05. Overall, the combination of high valuation ratios and mixed performance trends suggests that KIFS Financial is overvalued in the current market environment.