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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Indian Railway FinanceNSE:IRFC -0.74%71 PEG Ratio is 1.62 as of Sep. 10, 2026, which is 59% above its 10-year median of 1.02. GuruFocus rates NSE:IRFC with a GF Score™ of 71/100 and a GF Value™ of ₹133.62 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 234 Credit Services companies, Indian Railway Finance ranks worse than 65.38% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Indian Railway Finance's PEG Ratio or its related term are showing as below:
NSE:IRFC'
s PEG Ratio Range Over the Past 10 Years
Min: 0.84 Med: 1.02 Max: 2.65
Current: 1.62
During the past 9 years, Indian Railway Finance's highest PEG Ratio was 2.65. The lowest was 0.84. And the median was 1.02.
NSE:IRFC's PEG Ratio is ranked worse than 65.38% of 234
companies
in the Credit Services industry
Industry Median: 0.785
vs NSE:IRFC: 1.62
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Indian Railway Finance (NSE:IRFC) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Credit Services subindustry, Indian Railway Finance's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Indian Railway Finance PEG Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Indian Railway Finance's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Indian Railway Finance's PEG Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Indian Railway Finance (NSE:IRFC) has a PEG Ratio of 1.62 as of Sep. 10, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Indian Railway Finance and its competitors. This is 59% above median its historical median of 1.02. Over the past decade, Indian Railway Finance's PEG Ratio has ranged from 0.84 to 2.65. According to the industry distribution chart, Indian Railway Finance ranks #153 out of 234 companies in the Credit Services industry, placing it in the top 65.4%.
Is Indian Railway Finance's PEG Ratio too high?
Indian Railway Finance's current PEG Ratio of 1.62 is 59% above median its 10-year median of 1.02. Over the past 10 years, this metric has ranged from a low of 0.84 to a high of 2.65. The Credit Services industry median PEG Ratio is 0.79. Indian Railway Finance's value of 1.62 is 106.4% above this industry median. Based on the distribution chart, Indian Railway Finance ranks #153 out of 234 companies in the Credit Services industry, which is below the industry midpoint. Overall, Indian Railway Finance has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Indian Railway Finance's PEG Ratio compare to V and MA?
According to the Credit Services industry distribution chart, Indian Railway Finance ranks #153 out of 234 companies for PEG Ratio. This places Indian Railway Finance in the lower half of its industry. The industry median PEG Ratio is 0.79. Indian Railway Finance's value of 1.62 is 106.4% above this benchmark. Historically, Indian Railway Finance's own PEG Ratio has ranged from 0.84 to 2.65 over the past decade. While the company's 10-year median is 1.02 vs. the industry median of 0.79, Indian Railway Finance has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PEG Ratio for a Credit Services company?
The median PEG Ratio among Credit Services companies is 0.79, based on 234 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Indian Railway Finance's current PEG Ratio of 1.62 is 106.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Indian Railway Finance and its competitors. For the Credit Services industry, the median PEG Ratio is 0.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indian Railway Finance's current PEG Ratio is 1.62, which is 59% above median its own 10-year median of 1.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indian Railway Finance stock overvalued right now?
Based on GuruFocus' analysis, Indian Railway Finance (NSE:IRFC) is currently considered Possible Value Trap. The stock's GF Value™ is ₹133.62, compared to a current price of ₹81.39 — trading 39.1% below its estimated fair value. The current PEG Ratio is 1.62, which is 59% above median its 10-year median of 1.02 and 106.4% above the Credit Services industry median of 0.79. Indian Railway Finance's overall GF Score™ is 71/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Indian Railway Finance (NSE:IRFC), the current PEG Ratio is 1.62 as of Sep. 10, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Indian Railway Finance (NSE:IRFC) Overvalued in 2026?
Based on GuruFocus' analysis, Indian Railway Finance stock appears to be undervalued.
The current stock price of ₹81.39 is trading 39.1% below its estimated GF Value™ of ₹133.62.
GuruFocus considers Indian Railway Finance to be Possible Value Trap.
Key valuation signals for NSE:IRFC:
PEG Ratio: 1.62 (59% above median its 10-year median of 1.02)
GF Value™: ₹133.62 vs. price of ₹81.39 (39.1% below fair value)
Industry Position: 106.4% above the Credit Services median (#153 of 234)
No single metric tells the full story. See the NSE:IRFC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indian Railway Finance Corp Ltd is engaged in the business of borrowing funds from the financial markets to finance the acquisition/creation of assets, which are then leased out to the Indian Railways or any entity under the Ministry of Railways. Its only operating segment is Leasing and Finance. The company generates maximum revenue from Lease Income.
71GF Score
Get the complete analysis for NSE:IRFC
PEG Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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