Is Aadhar Hsg. Fin. overvalued or undervalued?

As of 12 June 2025, the valuation grade for Aadhar Housing Finance has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently assessed as undervalued. Key ratios include a PE ratio of 20.89, an EV to EBITDA of 14.19, and a ROE of 14.31%.
In comparison to peers, Aadhar's PE ratio is significantly higher than Life Insurance's 12.36, but lower than Bajaj Finance's 34.98, which is categorized as very expensive. Aadhar's valuation metrics suggest it is positioned favorably within the housing finance sector, particularly when compared to its peers. Notably, over the past year, Aadhar's stock has returned 12.89%, outperforming the Sensex's 6.64%, reinforcing the attractiveness of its current valuation.