Is Sundaram Finance overvalued or undervalued?

Sep 16 2025 08:04 AM IST
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As of September 15, 2025, Sundaram Finance is fairly valued with a PE ratio of 25.61 and an EV to EBIT of 15.83, showing reasonable valuation compared to peers like Bajaj Finance and Life Insurance, despite a recent stock decline of 8.68%.
As of 15 September 2025, Sundaram Finance's valuation grade has moved from expensive to fair, indicating a shift in market perception. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 25.61, an EV to EBIT of 15.83, and a ROE of 14.24%.

In comparison to its peers, Sundaram Finance's valuation appears reasonable, especially when contrasted with Bajaj Finance, which has a significantly higher PE ratio of 36.1, and Life Insurance, which boasts a much lower PE of 11.48. Despite recent stock performance showing a decline of 8.68% over the past year against a slight drop in the Sensex, the company's strong historical returns over three and five years suggest resilience. Overall, Sundaram Finance is fairly valued within its sector.
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