Is Regency Fincorp overvalued or undervalued?

Jul 18 2025 08:02 AM IST
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As of July 17, 2025, Regency Fincorp is considered overvalued with a PE ratio of 36.03 and an EV to EBITDA of 11.87, despite a strong historical performance, indicating a shift from fair to expensive valuation compared to its peers.
As of 17 July 2025, the valuation grade for Regency Fincorp has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a PE ratio of 36.03, an EV to EBITDA of 11.87, and a ROCE of 22.88%.

In comparison to its peers, Regency Fincorp's PE ratio is significantly higher than Life Insurance, which has a PE of 12.12, and is also elevated compared to Bajaj Finserv at 36.43. Despite a strong historical performance, with a 1-year stock return of 86.85% compared to the Sensex's 1.91%, the current valuation metrics suggest that Regency Fincorp is not justified at its current price of 27.86.
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