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

As of 16 October 2025, the valuation grade for M & M Fin. Serv. has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently considered overvalued based on its financial ratios. The PE ratio stands at 17.77, while the EV to EBITDA ratio is 12.81, and the PEG ratio is notably high at 16.45, suggesting that the stock price may not be justified by its earnings growth prospects.
In comparison to its peers, M & M Fin. Serv. has a lower PE ratio than Bajaj Finance, which is at 38.01, but significantly higher than Life Insurance, which is at 11.63. The EV to EBITDA ratio also reflects a similar trend, with M & M Fin. Serv. being less attractive than Life Insurance but more favorable than Bajaj Finserv at 13.03. Additionally, M & M Fin. Serv. has outperformed the Sensex in terms of stock returns over the past year, with a return of 3.84% compared to the Sensex's 2.41%, yet this does not mitigate the overall valuation concerns.