Is Aadhar Hsg. Fin. overvalued or undervalued?

As of 26 June 2025, Aadhar Housing Finance's valuation grade has moved from attractive to fair, indicating a shift in market perception. The company is currently fairly valued. Key ratios include a PE ratio of 21.07, an EV to EBIT of 14.41, and a ROE of 14.31%.
In comparison to peers, Aadhar's valuation is more favorable than Bajaj Finance, which is considered very expensive with a PE ratio of 35.54, and HDFC Life Insurance, also expensive with a PE of 95.13. However, it is less attractive than Life Insurance, which has a PE of 12.52. Notably, Aadhar's stock has outperformed the Sensex over the past year, returning 8.82% compared to the Sensex's 6.46%.