Is Aavas Financiers overvalued or undervalued?
As of September 24, 2025, Aavas Financiers is considered very expensive with a PE ratio of 26.92 and an EV to EBITDA of 16.05, significantly overvalued compared to peers like HUDCO and LIC Housing Finance, and has underperformed against the Sensex over the past year.
As of 24 September 2025, Aavas Financiers has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, with a PE ratio of 26.92, a Price to Book Value of 3.50, and an EV to EBITDA ratio of 16.05. These metrics indicate that the stock is trading at a significant premium compared to its earnings and book value.In comparison with peers, HUDCO has a PE ratio of 16.72 and an EV to EBITDA of 13.92, while LIC Housing Finance stands out with a very attractive PE ratio of 5.81 and an EV to EBITDA of 11.21. Aavas Financiers' valuation appears excessive, particularly when juxtaposed with these competitors. Additionally, the company's stock has underperformed against the Sensex over the past year, reinforcing the notion of overvaluation.
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