Is Paul Merchants overvalued or undervalued?

Oct 11 2025 08:08 AM IST
share
Share Via
As of October 10, 2025, Paul Merchants is considered very expensive and overvalued with a PE Ratio of 32.54, an EV to EBIT of 9.14, and a ROCE of 4.00%, especially when compared to peers like Bajaj Finance and Life Insurance, and its year-to-date return of -29.10% significantly lags behind the Sensex's 5.58%.
As of 10 October 2025, the valuation grade for Paul Merchants has moved from expensive to very expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE Ratio of 32.54, an EV to EBIT of 9.14, and a ROCE of 4.00%.

When compared to peers, Paul Merchants' valuation stands out, particularly against Bajaj Finance, which has a PE of 36.56, and Life Insurance, which is rated very attractive with a PE of 11.65. The company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -29.10% compared to the Sensex's 5.58%, further reinforcing the view that it is overvalued in the current market context.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News