Is Muthoot Finance overvalued or undervalued?
As of July 11, 2025, Muthoot Finance is fairly valued with a PE ratio of 20.00, outperforming the Sensex with a 44.13% return over the past year, and is competitively positioned compared to peers like Bajaj Finance and Bajaj Finserv, which have higher PE ratios of 34.86 and 36.31, respectively.
As of 11 July 2025, Muthoot Finance's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 20.00, a Price to Book Value of 3.61, and an EV to EBITDA of 13.42. These ratios suggest that Muthoot Finance is positioned competitively within the Non-Banking Financial Company (NBFC) sector.In comparison to its peers, Muthoot Finance's PE ratio is notably lower than that of Bajaj Finance, which is rated as very expensive with a PE of 34.86, and Bajaj Finserv, also expensive at 36.31. Meanwhile, Life Insurance, which is fairly valued, has a PE of 12.07, indicating that Muthoot Finance is in a reasonable range relative to its industry. Additionally, Muthoot Finance has outperformed the Sensex over the past year, with a return of 44.13% compared to the Sensex's 3.26%, reinforcing its valuation story.
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