Is Aavas Financiers overvalued or undervalued?

Sep 23 2025 08:06 AM IST
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As of September 22, 2025, Aavas Financiers is considered overvalued with a PE ratio of 27.02 and an EV to EBITDA of 16.08, compared to lower ratios of its peers like HUDCO and LIC Housing Finance, despite a recent 1-year return of -10.06%.
As of 22 September 2025, Aavas Financiers has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 27.02, an EV to EBITDA of 16.08, and a ROE of 13.00%.

In comparison to its peers, HUDCO has a PE ratio of 17.27 and an EV to EBITDA of 14.060, while LIC Housing Finance stands out with a very attractive PE ratio of 5.88. Despite a recent decline in stock performance, with a 1-year return of -10.06% compared to the Sensex's -2.82%, the valuation metrics suggest that Aavas Financiers is trading at a premium relative to its industry peers.
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