Is Shriram Finance overvalued or undervalued?

Jul 26 2025 08:00 AM IST
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As of July 25, 2025, Shriram Finance is fairly valued with a PE Ratio of 13.68, an EV to EBITDA of 10.41, and a ROE of 14.67%, showing strong past performance but a recent decline in returns compared to the Sensex.
As of 25 July 2025, Shriram Finance's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a PE Ratio of 13.68, an EV to EBITDA of 10.41, and a ROE of 14.67%.

In comparison to its peers, Shriram Finance's PE Ratio is significantly lower than that of Bajaj Finance, which stands at 32.58, and is also more favorable than Life Insurance's PE of 11.6. While the stock has shown a strong performance over the past three years with a return of 105.51% compared to the Sensex's 46.08%, recent trends indicate a decline, with a 1-month return of -8.96% against the Sensex's -1.56%. Overall, Shriram Finance appears to be fairly valued in the current market landscape.
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