Is Bajaj Housing overvalued or undervalued?

As of 24 June 2025, Bajaj Housing has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, as indicated by its high PE ratio of 46.44, an EV to EBIT of 65.87, and an EV to EBITDA of 64.91. These ratios significantly exceed those of its peers, such as Life Insurance with a PE ratio of 12.38 and Bajaj Finserv at 36.27, highlighting the disparity in valuation.
In comparison to the broader market, Bajaj Housing has underperformed, with a year-to-date return of -5.41% against the Sensex's gain of 5.01%. This trend reinforces the notion that the stock is overvalued given its high valuation metrics relative to its peers and the market performance.