Is Muthoot Cap.Serv overvalued or undervalued?

As of 10 October 2025, Muthoot Capital Services has moved from a very attractive to an attractive valuation grade. The company is currently fairly valued based on its financial metrics. Key ratios include a PE Ratio of 14.88, an EV to EBITDA of 9.92, and a Price to Book Value of 0.68, which suggest a reasonable valuation relative to its earnings and asset base.
In comparison to its peers, Muthoot Capital Services stands out with a PE Ratio lower than Bajaj Finance, which is at 36.56, and Life Insurance, which is at 11.65, indicating that Muthoot is more attractively priced in the context of its earnings. Furthermore, the company has a PEG Ratio of 0.00, which is significantly lower than the industry average, suggesting potential undervaluation relative to growth expectations. Despite recent stock performance lagging behind the Sensex, particularly with a year-to-date return of -17.95% compared to the Sensex's 5.58%, the valuation metrics indicate that Muthoot Capital Services is positioned fairly in the market.