Is Muthoot Finance overvalued or undervalued?

Sep 02 2025 08:03 AM IST
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As of September 1, 2025, Muthoot Finance is considered overvalued with a PE Ratio of 17.69 and an EV to EBITDA of 12.15, despite outperforming the Sensex with a 37.55% return over the past year, indicating a shift from fair to expensive valuation compared to its peers.
As of 1 September 2025, Muthoot Finance's valuation grade has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a PE Ratio of 17.69, an EV to EBITDA of 12.15, and a ROE of 20.96%.

In comparison to its peers, Muthoot Finance's PE Ratio is significantly lower than Bajaj Finance, which stands at 31.81, but higher than Life Insurance, which has a PE of 11.16. This suggests that while Muthoot Finance may be cheaper than some competitors, it is still positioned in the expensive range relative to its industry. Notably, the company's stock has outperformed the Sensex over various time frames, including a 37.55% return over the past year, reinforcing the notion of its current overvaluation.
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