Is Muthoot Microfin overvalued or undervalued?

Nov 14 2025 08:12 AM IST
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As of November 13, 2025, Muthoot Microfin is considered overvalued with a valuation grade of expensive, reflected by a PE ratio of -7.81, an EV to EBITDA of 22.30, and a Price to Book Value of 1.04, all of which compare unfavorably to peers like Bajaj Finance and Shriram Finance, while the company's stock has underperformed the Sensex with a 1-year return of -14.44%.
As of 13 November 2025, Muthoot Microfin's valuation grade has moved from very expensive to expensive. The company is currently considered overvalued based on its financial ratios and peer comparisons. Key ratios include a PE ratio of -7.81, an EV to EBITDA of 22.30, and a Price to Book Value of 1.04.

In comparison to its peers, Muthoot Microfin's PE ratio is significantly lower than that of Bajaj Finance, which stands at 34.18, and Life Insurance, which has a PE ratio of 11.18. Additionally, while Muthoot Microfin's EV to EBITDA ratio of 22.30 is higher than the industry average, it still reflects a premium compared to some peers like Shriram Finance at 11.05. The company's recent stock performance has lagged behind the Sensex, with a 1-year return of -14.44% compared to the Sensex's 8.74%, reinforcing the notion of overvaluation.
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