Is Bajaj Housing overvalued or undervalued?

As of 4 November 2025, Bajaj Housing's valuation grade has moved from expensive to very expensive, indicating a significant increase in its perceived valuation. The company is currently considered overvalued. Key ratios include a PE ratio of 42.22, an EV to EBITDA of 61.66, and a ROE of 10.84%. In comparison to peers, Bajaj Finance has a PE ratio of 37.67, while Life Insurance stands out with a very attractive EV to EBITDA of 9.18. The substantial difference in these ratios highlights Bajaj Housing's overvaluation in the housing finance sector. Additionally, the company's stock has underperformed compared to the Sensex over the past year, with a return of -18.99% versus the Sensex's 5.94%, reinforcing the notion of overvaluation.