Is Sundaram Finance overvalued or undervalued?

Sep 17 2025 08:04 AM IST
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As of September 16, 2025, Sundaram Finance is considered overvalued with a PE Ratio of 26.51, significantly higher than its peers, indicating limited upside potential despite strong historical performance.
As of 16 September 2025, Sundaram Finance has moved from a fair to an expensive valuation grade. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE Ratio of 26.51, an EV to EBITDA of 15.56, and a ROE of 14.24%.

In comparison to its peers, Sundaram Finance's PE Ratio is significantly higher than Life Insurance, which stands at 11.47, indicating a more attractive valuation. Additionally, Bajaj Finserv, another peer, has a PE Ratio of 34.93, further emphasizing the relative expense of Sundaram Finance. Despite a strong historical performance, with a 3-year return of 105.33% compared to the Sensex's 40.01%, the current valuation suggests that the stock may not offer sufficient upside potential at its current price of 4585.00.
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