Is Aavas Financiers overvalued or undervalued?

Jul 20 2025 08:02 AM IST
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As of July 18, 2025, Aavas Financiers is fairly valued with a PE ratio of 30.68, an EV to EBITDA of 17.29, and a ROE of 13.00%, although it trades at a premium compared to peers like HUDCO and Can Fin Homes, and has a year-to-date return of 13.44%, outperforming the Sensex's 4.63%.
As of 18 July 2025, the valuation grade for Aavas Financiers has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 30.68, an EV to EBITDA of 17.29, and a ROE of 13.00%.

In comparison to its peers, Aavas Financiers' PE ratio is significantly higher than HUDCO's 16.74 and Can Fin Homes' 12.68, which indicates a premium valuation relative to these competitors. Notably, while Aavas has shown a year-to-date return of 13.44%, it still lags behind the Sensex's 4.63% return during the same period, reflecting a mixed performance in the broader market context.
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