Is Sundaram Finance overvalued or undervalued?

As of 25 August 2025, the valuation grade for Sundaram Finance has moved from very expensive to expensive. The company is currently considered overvalued based on its financial ratios. The PE ratio stands at 28.64, the Price to Book Value is 4.17, and the EV to EBITDA ratio is 16.14, all of which indicate a premium valuation compared to its peers.
In comparison to its industry peers, Sundaram Finance's PE ratio is significantly higher than Life Insurance, which has a PE of 11.61, and even Bajaj Finserv at 32.96, indicating that Sundaram Finance is priced at a premium despite its expensive valuation grade. The company's recent stock performance has outpaced the Sensex, with a year-to-date return of 19.11% compared to the Sensex's 4.48%, suggesting that while the stock may be overvalued, it has still attracted investor interest.