Is Sundaram Finance overvalued or undervalued?

As of 4 November 2025, Sundaram Finance has moved from a fair to an attractive valuation grade, indicating a positive shift in its market perception. The company is currently considered undervalued, with a PE ratio of 26.89, an EV to EBITDA of 13.95, and a Price to Book Value of 0.35, which suggests that the stock may be trading below its intrinsic value compared to its earnings and assets.
In comparison to its peers, Sundaram Finance's PE ratio of 26.89 is significantly lower than that of Bajaj Finance, which stands at 37.67, and Bajaj Finserv at 34.81, both of which are categorized as very expensive. Additionally, the company's PEG ratio of 1.29 is more favorable compared to the industry average, reinforcing its attractive valuation. Notably, Sundaram Finance has outperformed the Sensex with a year-to-date return of 14.87% against the Sensex's 6.81%, further supporting the argument for its undervaluation.