Is Muthoot Finance overvalued or undervalued?

Aug 29 2025 08:06 AM IST
share
Share Via
As of August 28, 2025, Muthoot Finance is fairly valued with a PE Ratio of 17.26, lower than its peers like Bajaj Finance and Bajaj Finserv, and has outperformed the Sensex with a year-to-date return of 23.57%.
As of 28 August 2025, Muthoot Finance's valuation grade has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE Ratio of 17.26, an EV to EBITDA of 11.99, and a PEG Ratio of 0.46, indicating a reasonable valuation in comparison to its earnings growth potential.

In terms of peer comparison, Muthoot Finance's PE Ratio is notably lower than that of Bajaj Finance, which stands at 31.28, and Bajaj Finserv at 32.13, both categorized as very expensive. Additionally, Life Insurance is rated very attractive with a PE of 11.27, showcasing a more favorable valuation. Muthoot Finance has outperformed the Sensex with a year-to-date return of 23.57% compared to the Sensex's 2.48%, reinforcing its fair valuation status in the market.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News