Is Muthoot Finance overvalued or undervalued?

Jun 09 2025 03:38 PM IST
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As of June 3, 2025, Muthoot Finance is fairly valued with a PE ratio of 18.64, an EV to EBITDA of 12.93, and a PEG ratio of 0.82, outperforming the Sensex with a one-year return of 42.42%, while its valuation is lower than Bajaj Finance's PE of 35.01 and comparable to Life Insurance's PE of 12.54.
As of 3 June 2025, Muthoot Finance has moved from an expensive valuation grade to fair. The company is currently fairly valued. Key ratios include a PE ratio of 18.64, an EV to EBITDA of 12.93, and a PEG ratio of 0.82, indicating a reasonable valuation compared to its earnings growth potential.

In comparison to peers, Muthoot Finance's PE ratio is significantly lower than Bajaj Finance, which is rated as very expensive with a PE of 35.01, while Life Insurance is also fairly valued with a PE of 12.54. The company's recent stock performance has outpaced the Sensex, with a one-year return of 42.42% compared to the Sensex's 7.61%, reinforcing the notion that Muthoot Finance is positioned well within its sector.
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