Is Optimus Finance overvalued or undervalued?

Sep 08 2025 08:01 AM IST
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As of September 5, 2025, Optimus Finance is considered expensive and overvalued with a PE ratio of 31.80, despite strong historical returns, especially when compared to peers like Bajaj Finance and Bajaj Finserv, which are categorized as very expensive, while Life Insurance is seen as very attractive with a PE ratio of 11.39.
As of 5 September 2025, the valuation grade for Optimus Finance has moved from very expensive to expensive. The company is currently considered overvalued based on its key financial ratios. The PE ratio stands at 31.80, while the EV to EBITDA ratio is 13.50, and the PEG ratio is 17.29, indicating a high valuation relative to its earnings growth potential.

In comparison to its peers, Bajaj Finance has a PE ratio of 33.5, and Bajaj Finserv stands at 33.81, both categorized as very expensive. On the other hand, Life Insurance is seen as very attractive with a PE ratio of 11.39, highlighting a significant valuation disparity within the sector. Despite Optimus Finance's strong historical returns, including a 110.60% increase over the past year, its current valuation suggests that it may not provide sufficient upside potential relative to its peers.
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