Is LIC Housing Fin. overvalued or undervalued?

As of 17 October 2025, the valuation grade for LIC Housing Finance has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics, which include a PE ratio of 5.68, a Price to Book Value of 0.86, and an EV to EBITDA of 11.18. These ratios suggest that while the company is not overvalued, it may not present significant upside potential at this time.
In comparison to its peers, LIC Housing Finance stands out with a notably lower PE ratio than HUDCO, which is at 16.17, and PNB Housing, which has a PE of 10.73, both of which are considered very expensive. Despite this, the company's recent performance has lagged behind the Sensex, with a year-to-date return of -5.23% compared to the Sensex's 7.44%. Overall, while LIC Housing Finance is fairly valued, its lower valuation ratios relative to peers and recent stock performance suggest limited growth prospects in the near term.