Is Motor & Gen Fin overvalued or undervalued?

As of 23 October 2025, the valuation grade for Motor & Gen Fin has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 146.36, an EV to EBITDA of -105.31, and a ROE of 1.06%. These ratios suggest that the company's stock price is not justified by its earnings or asset value.
When compared to peers, Motor & Gen Fin's valuation stands out, particularly against Bajaj Finance, which has a PE ratio of 39.07, and Life Insurance, which boasts a very attractive PE of 11.68. The significant disparity in these ratios highlights that Motor & Gen Fin is priced much higher relative to its earnings potential and operational performance. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -9.87% compared to the Sensex's 8.21%, further reinforcing the notion of overvaluation.