Is Motil.Oswal.Fin. overvalued or undervalued?

Aug 05 2025 08:02 AM IST
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As of August 4, 2025, Motilal Oswal Financial Services is considered very expensive with a PE ratio of 19.96 and high valuation metrics, suggesting that its stock price may not be justified by its strong earnings potential despite a significant one-year return of 41.09%.
As of 4 August 2025, the valuation grade for Motilal Oswal Financial Services has moved from expensive to very expensive. The company is currently overvalued, with a PE ratio of 19.96, a Price to Book Value of 5.01, and an EV to EBITDA ratio of 12.27. In comparison, its peers such as Life Insurance have a PE ratio of 11.73 and Bajaj Finance has a significantly higher PE ratio of 31.57, indicating that Motilal Oswal is trading at a premium relative to some of its competitors.

Notably, while the company has a strong ROCE of 28.94% and ROE of 22.58%, the high valuation metrics suggest that the stock price may not be justified by its earnings potential. Additionally, despite a strong one-year return of 41.09% compared to a mere 0.05% for the Sensex, the current valuation indicates that investors may be overestimating future growth prospects.
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