Is Motil.Oswal.Fin. overvalued or undervalued?

As of 9 October 2025, the valuation grade for Motilal Oswal Financial Services has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued. Key ratios include a PE ratio of 21.16, an EV to EBITDA of 12.95, and a Price to Book Value of 5.31, all of which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to peers, Bajaj Finance has a much higher PE ratio of 36.57, while Life Insurance is valued more attractively with a PE of 11.62. This highlights that Motilal Oswal is not only overvalued relative to its own historical metrics but also compared to some of its competitors in the capital markets industry. Additionally, the company's recent stock performance has outpaced the Sensex, with a 1-year return of 24.85% compared to the Sensex's 0.87%, further emphasizing the market's bullish sentiment despite the overvaluation.