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

As of 10 October 2025, the valuation grade for M & M Fin. Serv. has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 17.06, an EV to EBITDA of 12.68, and a PEG ratio of 15.79, which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, M & M Fin. Serv. has a lower PE ratio than Bajaj Finance, which stands at 36.56, but is higher than Life Insurance's attractive PE of 11.65. This indicates that while M & M is less expensive than some peers, it remains overvalued relative to more attractively priced competitors. Additionally, the company's recent stock performance has outpaced the Sensex, with a year-to-date return of 8.93% compared to the Sensex's 5.58%, further complicating its valuation narrative.