Is Optimus Finance overvalued or undervalued?

Oct 20 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 year-to-date return of -31.02%, contrasting with the Sensex's 7.44% gain, indicating its valuation is not justified compared to industry peers.
As of 17 October 2025, the valuation grade for Optimus Finance has moved from fair to expensive. The company is currently overvalued based on its financial ratios, which include a PE ratio of 21.77, an EV to EBITDA of 9.45, and a PEG ratio of 11.84. In comparison to its peers, Bajaj Finance is categorized as very expensive with a PE ratio of 38.21, while Life Insurance stands out as very attractive with a PE ratio of 11.49, indicating that Optimus Finance's valuation is not justified relative to its industry.

The company's recent performance shows a significant decline, with a year-to-date return of -31.02%, contrasting sharply with the Sensex's positive return of 7.44% over the same period. This underperformance, coupled with the high valuation ratios, reinforces the conclusion that Optimus Finance is overvalued in the current market environment.
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