Is Sakthi Finance overvalued or undervalued?

Jun 27 2025 08:01 AM IST
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As of June 26, 2025, Sakthi Finance is fairly valued with a PE ratio of 19.26, an EV to EBITDA ratio of 9.26, and a Price to Book Value of 1.40, indicating competitive positioning against peers and potential for long-term growth despite recent underperformance against the Sensex.
As of 26 June 2025, Sakthi Finance's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 19.26, an EV to EBITDA ratio of 9.26, and a Price to Book Value of 1.40. These ratios suggest that the company's valuation is in line with its earnings and asset base.

When compared to peers, Sakthi Finance's PE ratio is notably higher than Life Insurance's 12.52 but significantly lower than Bajaj Finance's 35.54, which is categorized as very expensive. Additionally, the company's EV to EBITDA ratio of 9.26 is competitive against the industry, reinforcing its fair valuation status. While the stock has underperformed against the Sensex year-to-date, it has shown strong returns over a three and five-year period, suggesting potential for recovery and growth in the long term.
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