Is Lead Financial S overvalued or undervalued?

Nov 18 2025 08:18 AM IST
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As of November 17, 2025, Lead Financial S is overvalued with a PE ratio of 35.17 and a low ROE of 2.75%, significantly underperforming the Sensex with a return of -22.33% compared to its 9.50% gain.
As of 17 November 2025, Lead Financial S has moved from a fair valuation to an expensive rating. The company is currently overvalued, with a PE ratio of 35.17, an EV to EBIT of 5.96, and a ROE of 2.75%. In comparison to its peers, Bajaj Finance is also considered very expensive with a PE of 34.85, while Life Insurance stands out as very attractive with a PE of 11.33.

The valuation metrics suggest that Lead Financial S is not justified at its current price of 18.12, especially when considering its low return on capital employed (ROCE) of 4.87%. The recent stock performance indicates a significant underperformance compared to the Sensex, particularly over the year, where Lead Financial S has returned -22.33% against the Sensex's 9.50%.
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