Is M & M Fin. Serv. overvalued or undervalued?

As of 18 July 2025, M & M Fin. Serv. has moved from a fair to an attractive valuation grade. The company is currently considered undervalued. Key ratios include a PE ratio of 15.95, an EV to EBITDA of 12.84, and a dividend yield of 2.50%.
In comparison to its peers, M & M Fin. Serv. has a PE ratio that is higher than Life Insurance at 12.08 but significantly lower than Bajaj Finance, which is at 35.18. Additionally, the EV to EBITDA ratio of 12.84 is more favorable than Bajaj Finserv's 13.5, indicating a better valuation relative to its earnings potential. Despite recent stock performance lagging behind the Sensex, particularly over the past year with a return of -12.09% compared to the Sensex's 0.51%, the underlying valuation metrics suggest that M & M Fin. Serv. presents a compelling investment opportunity at its current price of 259.50.