Is Smart Finsec overvalued or undervalued?

Oct 11 2025 08:04 AM IST
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As of October 10, 2025, Smart Finsec is considered overvalued with a valuation grade of very expensive, featuring a PE ratio of 29.95 and an EV to EBIT of 19.81, significantly higher than its peers like Life Insurance and Bajaj Finance, while also underperforming against the Sensex over the past year.
As of 10 October 2025, Smart Finsec's valuation grade has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 29.95, an EV to EBIT of 19.81, and a ROE of 7.33%.

In comparison to its peers, Smart Finsec's valuation metrics are notably higher than those of Life Insurance, which has a PE of 11.65 and an EV to EBITDA of 9.08, indicating that Smart Finsec is trading at a premium despite its lower return on equity. Additionally, Bajaj Finance, another peer, has a PE ratio of 36.56, further emphasizing the overvaluation of Smart Finsec in the current market context. Recent stock performance shows that Smart Finsec has underperformed against the Sensex, particularly over the past year, which reinforces the notion of its overvaluation.
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