Is Muthoot Finance overvalued or undervalued?

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 based on its financial metrics. Key ratios include a PE Ratio of 20.00, an EV to EBITDA of 13.42, and a PEG Ratio of 0.88, which suggests that the stock is reasonably priced relative to its growth prospects.
In comparison to its peers, Muthoot Finance's PE Ratio is significantly 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. This positions Muthoot Finance attractively within the non-banking financial company sector. Additionally, the company's strong performance is reflected in its year-to-date return of 23.36%, outperforming the Sensex's 5.58% during the same period, reinforcing the notion that it is fairly valued in the current market context.