Is Smart Finsec overvalued or undervalued?

Nov 10 2025 08:07 AM IST
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As of November 7, 2025, Smart Finsec is considered very expensive and overvalued with a PE ratio of 26.09, significantly higher than its peers, and has underperformed the Sensex with a year-to-date return of -33.07%.
As of 7 November 2025, the valuation grade for Smart Finsec 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 26.09, an EV to EBIT of 16.79, and a ROCE of 29.73%.

In comparison to its peers, Smart Finsec's valuation stands out as notably high, especially when contrasted with Bajaj Finance, which has a PE ratio of 38.09, and Life Insurance, which is valued attractively with a PE of 11.44. Additionally, Smart Finsec's stock has underperformed relative to the Sensex, with a year-to-date return of -33.07% compared to the Sensex's 6.50%, further reinforcing the perception of overvaluation in the current market environment.
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