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

Oct 13 2025 08:10 AM IST
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As of October 10, 2025, M & M Fin. Serv. is considered very expensive and overvalued based on its financial ratios, with a PE ratio of 17.06, a Price to Book Value of 1.82, and an EV to EBITDA of 12.68, despite a strong year-to-date return of 8.93%.
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 perceived value. The company is currently overvalued based on its financial ratios, with a PE ratio of 17.06, a Price to Book Value of 1.82, and an EV to EBITDA of 12.68. These figures suggest that the stock is priced higher relative to its earnings and book value compared to its peers.

In comparison to its industry, M & M Fin. Serv. stands out as overvalued when placed alongside Bajaj Finance, which has a much higher PE ratio of 36.56, and Life Insurance, which boasts a more attractive PE of 11.65. The company's recent performance has been relatively strong, with a year-to-date return of 8.93% compared to the Sensex's 5.58%, but this does not mitigate the overvaluation indicated by its ratios. Overall, M & M Fin. Serv. appears to be priced excessively in the current market.
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