Is Bajaj Housing overvalued or undervalued?

As of 10 October 2025, the valuation grade for Bajaj Housing has moved from expensive to very expensive, indicating a significant shift in its market positioning. The company is currently assessed as overvalued. Key ratios reveal a PE ratio of 42.38, an EV to EBITDA of 61.78, and a ROE of 10.84%.
In comparison to its peers, Bajaj Finance shows a lower PE ratio of 36.56, while Life Insurance stands out with a very attractive valuation at a PE of 11.65. The high valuation metrics for Bajaj Housing, particularly its elevated EV to EBIT and EV to EBITDA ratios, suggest that the stock is priced significantly above its intrinsic value. Furthermore, the company's stock has underperformed against the Sensex, with a year-to-date return of -13.69% compared to the Sensex's 5.58%, reinforcing the overvaluation narrative.