Is Optimus Finance overvalued or undervalued?

Oct 19 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, an EV to EBITDA of 9.45, and a PEG ratio of 11.84, especially compared to peers like Bajaj Finance and Life Insurance, despite a strong 1-year return of 27.12% and a year-to-date decline of 31.02%.
As of 17 October 2025, the valuation grade for Optimus Finance 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 21.77, an EV to EBITDA of 9.45, and a PEG ratio of 11.84, which suggest that the stock is trading at a premium compared to its earnings growth potential.

In comparison to its peers, Bajaj Finance has a significantly higher PE ratio of 38.21, while Life Insurance presents a more attractive valuation with a PE of 11.49. This highlights that Optimus Finance is positioned at a higher valuation than some of its competitors, which may not justify its current price level. Additionally, despite a strong 1-year stock return of 27.12%, the year-to-date performance shows a decline of 31.02%, further supporting the view that the stock may be overvalued in the current market environment.
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