Is Aadhar Hsg. Fin. overvalued or undervalued?

As of 5 June 2025, the valuation grade for Aadhar Housing Finance has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Notable ratios include a PE ratio of 21.30, an EV to EBIT of 14.50, and a ROE of 14.31%.
When compared to peers, Aadhar's PE ratio is significantly higher than Life Insurance's 12.54, but lower than Bajaj Finance's 35.01, which is categorized as very expensive. Additionally, Aadhar's EV to EBITDA ratio of 14.35 is in line with its valuation grade, indicating a balanced position within the housing finance sector. The company's stock has outperformed the Sensex over the past year, returning 24.02% compared to the Sensex's 7.56%, reinforcing the perspective that it is fairly valued in the current market environment.