Is Bajaj Housing overvalued or undervalued?

As of 17 October 2025, Bajaj Housing's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued, with a PE ratio of 42.16, an EV to EBITDA ratio of 61.62, and a Price to Book Value of 4.57. These ratios suggest that Bajaj Housing is trading at a premium compared to its earnings and book value.
In comparison to its peers, Bajaj Finance, which has a PE ratio of 38.21, and Bajaj Finserv, with a PE ratio of 34.94, both appear to offer relatively better value in the same sector. Notably, while Bajaj Housing's ROE stands at 10.84%, it is significantly overshadowed by the very attractive valuations of competitors like Life Insurance, which has a PE ratio of 11.49. Additionally, the company's performance has lagged behind the Sensex, with a year-to-date return of -14.12% compared to the Sensex's positive 7.44%, further reinforcing the notion of overvaluation.