Is TCI Finance overvalued or undervalued?

Oct 11 2025 08:06 AM IST
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As of October 10, 2025, TCI Finance is considered very expensive and overvalued, with concerning financial metrics such as a PE ratio of 4.56 and a year-to-date stock decline of 34.21%, significantly underperforming compared to its peers and the Sensex.
As of 10 October 2025, TCI Finance's valuation grade has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 4.56, an EV to EBIT of -5.10, and a PEG ratio of 0.01, which are all concerning indicators of its financial health.

In comparison to its peers, TCI Finance's valuation metrics stand out unfavorably; for instance, Bajaj Finance has a PE ratio of 36.56 and an EV to EBITDA of 19.67, while Life Insurance boasts a PE of 11.65 and an EV to EBITDA of 9.08, both suggesting that TCI Finance is not only overvalued but also underperforming relative to its industry. The company's stock has experienced a significant decline year-to-date, down 34.21%, contrasting sharply with the Sensex's gain of 5.58%, further reinforcing the notion of overvaluation.
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