Is Smart Finsec overvalued or undervalued?
As of October 31, 2025, Smart Finsec is fairly valued with a PE ratio of 26.84, an EV to EBITDA of 16.92, and a ROCE of 29.73%, making it more attractive than some peers despite a year-to-date return of -31.12% compared to the Sensex's gain of 7.42%.
As of 31 October 2025, the valuation grade for Smart Finsec has moved from expensive to fair. Based on the analysis, the company appears to be fairly valued at this time. The key ratios include a PE ratio of 26.84, an EV to EBITDA of 16.92, and a ROCE of 29.73%. In comparison to peers, Smart Finsec's PE ratio is significantly lower than Bajaj Finance, which has a PE of 37.23, and higher than Life Insurance, which stands at 11.62. This suggests that while Smart Finsec is fairly valued, it is still more attractive than some of its more expensive peers. Notably, the company's recent stock performance has been underwhelming, with a year-to-date return of -31.12%, contrasting with the Sensex's gain of 7.42%, indicating potential for recovery if market conditions improve.
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