Is Prime Securities overvalued or undervalued?

Oct 14 2025 08:06 AM IST
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As of October 13, 2025, Prime Securities is considered overvalued with a valuation grade of expensive, reflected by a high PE Ratio of 26.41 and strong historical performance, despite its impressive ROCE and ROE compared to peers.
As of 13 October 2025, the valuation grade for Prime Securities has moved from very expensive to expensive. The company is currently considered overvalued based on its financial ratios. Notable ratios include a PE Ratio of 26.41, an EV to EBITDA of 16.46, and a PEG Ratio of 0.44, which indicates a significant growth potential compared to its price.

When compared to peers, Prime Securities' PE Ratio is notably higher than Life Insurance, which has a PE of 11.66, and also exceeds I R F C at 24.57. While Prime Securities has a strong ROCE of 431.69% and a ROE of 17.23%, these figures do not sufficiently justify its current valuation in the context of its peers. Additionally, the stock has shown a return of 188.38% over the last three years, significantly outperforming the Sensex, which reinforces the perception of overvaluation despite its strong historical performance.
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