Is Motor & Gen Fin overvalued or undervalued?

Oct 15 2025 08:04 AM IST
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As of October 14, 2025, Motor & Gen Fin is considered overvalued with a high PE ratio of 147.38 and negative EV metrics, especially when compared to peers like Bajaj Finance and Life Insurance, and has underperformed with a year-to-date return of -9.24% against the Sensex's 4.98% gain.
As of 14 October 2025, the valuation grade for Motor & Gen Fin has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently deemed overvalued based on its high PE ratio of 147.38, a negative EV to EBIT of -55.52, and an EV to EBITDA of -106.04. These ratios suggest that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.

In comparison to its peers, Motor & Gen Fin's valuation stands out unfavorably; for instance, Bajaj Finance has a PE ratio of 36.37, while Life Insurance boasts a much lower PE of 11.7, highlighting the disparity in valuation metrics within the industry. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -9.24%, contrasting sharply with the Sensex's gain of 4.98% over the same period, reinforcing the notion of overvaluation.
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