Is Can Fin Homes overvalued or undervalued?

As of 3 November 2025, the valuation grade for Can Fin Homes has moved from fair to very expensive. The company is currently overvalued, with a PE ratio of 12.47, a Price to Book Value of 2.27, and an EV to EBITDA ratio of 11.71. In comparison to its peers, HUDCO has a significantly higher PE ratio of 17.07, while LIC Housing Finance presents a much more attractive valuation with a PE of 5.74.
Despite Can Fin Homes showing a solid ROE of 18.18% and a PEG ratio of 1.01, the overall valuation metrics indicate that the stock is trading at a premium compared to its industry peers. The recent performance of Can Fin Homes, with a year-to-date return of 14.03% compared to the Sensex's 7.47%, suggests that while it has outperformed the index recently, the current valuation does not justify further investment at this level.