Is Prime Securities overvalued or undervalued?

Nov 08 2025 08:10 AM IST
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As of November 7, 2025, Prime Securities is considered overvalued with a PE Ratio of 30.49 and an EV to EBITDA of 23.40, despite a strong 175.46% return over three years, indicating its current price of 301.35 is not justified compared to peers.
As of 7 November 2025, the valuation grade for Prime Securities has moved from very expensive to expensive, indicating a slight improvement in its valuation perception. The company is currently considered overvalued based on its financial ratios. Key ratios include a PE Ratio of 30.49, an EV to EBITDA of 23.40, and a Price to Book Value of 4.92, which are significantly higher than some peers in the Non-Banking Financial Company (NBFC) sector.

In comparison to its peers, Bajaj Finance has a PE Ratio of 38.09 and an EV to EBITDA of 20.2, while Life Insurance boasts a much lower PE of 11.44 and an EV to EBITDA of 0.37, highlighting the premium at which Prime Securities is trading. Despite a strong return of 175.46% over the past three years compared to the Sensex's 36.01%, the current valuation metrics suggest that Prime Securities is not justified at its current price of 301.35, reinforcing the conclusion that it is overvalued.
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