Is Optimus Finance overvalued or undervalued?

As of 20 October 2025, the valuation grade for Optimus Finance has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 21.26, an EV to EBITDA ratio of 9.24, and a ROCE of 18.34%. In comparison to its peers, Bajaj Finance is classified as very expensive with a PE of 38.6, while Life Insurance is considered very attractive with a PE of 11.57, highlighting the relative valuation of Optimus Finance within the industry.
Despite recent underperformance, with a year-to-date return of -32.65% compared to the Sensex's 7.97%, the company's valuation metrics suggest it is positioned well among its peers. The EV to Sales ratio of 0.84 further supports the argument that Optimus Finance is not overvalued, especially when contrasted with higher valuations seen in competitors like Bajaj Finserv and Jio Financial. Overall, the current metrics and peer comparisons indicate that Optimus Finance presents a fair investment opportunity in the current market landscape.