Is VLS Finance overvalued or undervalued?

Jul 07 2025 08:01 AM IST
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As of July 4, 2025, VLS Finance is fairly valued with a PE Ratio of 18.57 and an EV to EBITDA of 8.99, showing competitive positioning within the industry despite underperforming the Sensex with a year-to-date return of -27.32%.
As of 4 July 2025, VLS Finance's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time. Key ratios include a PE Ratio of 18.57, an EV to EBITDA of 8.99, and a Price to Book Value of 0.35, which suggest that while the company is not undervalued, it is also not significantly overvalued.

In comparison to its peers, VLS Finance's PE Ratio is higher than Life Insurance's 12.32 but lower than Bajaj Finance's 34.56, indicating a competitive position within the industry. The EV to EBITDA ratio of 8.99 is also more favorable than Bajaj Finance's 19.36, further supporting the conclusion that VLS Finance is fairly valued. Notably, the company's recent stock performance has underperformed the Sensex, with a year-to-date return of -27.32% compared to the Sensex's 6.77%, which may reflect broader market conditions impacting its valuation.
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