Is Optimus Finance overvalued or undervalued?

Oct 18 2025 08:05 AM IST
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As of October 17, 2025, Optimus Finance is considered overvalued with a PE ratio of 21.77 and a current price of 16.90, especially when compared to peers like Bajaj Finance and Life Insurance, and it has underperformed the Sensex with a return of -31.02%.
As of 17 October 2025, the valuation grade for Optimus Finance has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on its price-to-earnings (PE) ratio of 21.77, a price-to-book value of 2.20, and an EV to EBITDA ratio of 9.45. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.

In comparison to its peers, Bajaj Finance is categorized as very expensive with a PE ratio of 38.21, while Life Insurance is seen as very attractive with a PE of 11.49. This highlights that Optimus Finance's valuation is relatively high within its industry. Additionally, the stock has underperformed against the Sensex in the year-to-date period, with a return of -31.02% compared to the Sensex's 7.44%, reinforcing the notion that the stock may be overvalued at its current price of 16.90.
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