Is Sundaram Finance overvalued or undervalued?

Sep 24 2025 08:05 AM IST
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As of September 23, 2025, Sundaram Finance is fairly valued with a PE ratio of 26.79 and an EV to EBITDA ratio of 15.64, outperforming peers like Bajaj Finance and Bajaj Finserv, and returning 10.95% year-to-date compared to the Sensex's 5.07%.
As of 23 September 2025, Sundaram Finance's valuation grade has moved from expensive to fair, indicating a shift in its market perception. The company is currently fairly valued. Key ratios include a PE ratio of 26.79, an EV to EBITDA ratio of 15.64, and a ROE of 14.24%.

In comparison to its peers, Sundaram Finance's valuation metrics are more attractive than those of Bajaj Finance, which has a PE ratio of 36.62, and Bajaj Finserv, with a PE of 34.96. Additionally, the company has outperformed the Sensex in the year-to-date period, returning 10.95% compared to the Sensex's 5.07%, reinforcing its relatively favorable valuation position.
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