Is Can Fin Homes overvalued or undervalued?

As of 10 October 2025, Can Fin Homes has moved from a fair valuation to very expensive. The company's current valuation suggests it is overvalued. Key ratios include a PE ratio of 11.98, an EV to EBITDA of 11.72, and a ROE of 17.39%.
In comparison to its peers, Can Fin Homes' PE ratio is lower than HUDCO's 16.77 but higher than LIC Housing Finance's 5.68, indicating a premium valuation despite its lower growth prospects reflected in a PEG ratio of 0.80. Other peers like Aavas Financiers and Home First Finance are also categorized as very expensive, with PE ratios of 26.22 and 30.73, respectively. While Can Fin Homes has shown a positive return of 4.82% year-to-date, it still lags behind the Sensex's return of 5.58% in the same period, reinforcing the notion of its overvaluation.