Is Smart Finsec overvalued or undervalued?

Nov 04 2025 08:05 AM IST
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As of November 3, 2025, Smart Finsec is considered overvalued with a PE ratio of 26.74 and an EV to EBITDA of 16.84, underperforming the Sensex with a year-to-date return of -31.39%, making it less favorable as an investment at its current price of 10.25.
As of 3 November 2025, the valuation grade for Smart Finsec has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 26.74, an EV to EBITDA of 16.84, and a ROCE of 29.73%.

In comparison to its peers, Smart Finsec's valuation stands out; for instance, Bajaj Finance has a significantly higher PE ratio of 37.15, while Life Insurance boasts a much lower EV to EBITDA of 9.34, highlighting Smart Finsec's relative overvaluation. Additionally, the company's stock has underperformed against the Sensex, with a year-to-date return of -31.39% compared to the Sensex's 7.47%, reinforcing the notion that Smart Finsec may not be a favorable investment at its current price of 10.25.
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