Is Prime Securities overvalued or undervalued?

Nov 09 2025 08:10 AM IST
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As of November 7, 2025, Prime Securities is considered overvalued with a valuation grade of expensive, reflected in its high PE ratio of 30.49, compared to peers like Bajaj Finance and Bajaj Finserv, despite its strong ROCE of 431.69% and a YTD stock return of 9.62%.
As of 7 November 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. The PE ratio stands at 30.49, while the Price to Book Value is 4.92, and the EV to EBITDA ratio is 23.40.

In comparison to its peers, Bajaj Finance has a higher PE ratio of 38.09, and Bajaj Finserv also shows an expensive valuation with a PE of 35.3. Notably, Life Insurance is rated very attractive with a significantly lower PE of 11.44, indicating a stark contrast in valuation within the sector. Despite Prime Securities' strong ROCE of 431.69% and a YTD stock return of 9.62% compared to the Sensex's 6.50%, the overall valuation suggests that the stock is overpriced relative to its peers and fundamentals.
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