Is Motor & Gen Fin overvalued or undervalued?

Nov 13 2025 08:08 AM IST
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As of November 12, 2025, Motor & Gen Fin is considered overvalued with a PE ratio of 141.41 and an EV to EBITDA of -101.74, significantly higher than its peers, and has underperformed the Sensex with a return of -22.45% over the past year.
As of 12 November 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 141.41, an EV to EBITDA of -101.74, and a ROE of 1.06%. These ratios suggest that the stock is trading at a significant premium compared to its earnings and cash flow generation capabilities.

In comparison to its peers, Motor & Gen Fin's PE ratio is markedly higher than Bajaj Finance at 34.41 and Life Insurance at 11.14, both of which are in the same industry. Additionally, the company's EV to EBITDA ratio is considerably worse than that of Bajaj Finserv, which stands at 12.45. The recent stock performance shows that Motor & Gen Fin has underperformed the Sensex over the past year, with a return of -22.45% compared to the Sensex's 7.36%, further reinforcing the notion of overvaluation.
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