Is Homesfy Realty overvalued or undervalued?

As of 25 August 2025, Homesfy Realty's valuation grade has moved from very expensive to expensive, indicating a slight improvement in perceived value but still reflecting high valuation concerns. The company is currently considered overvalued. Key ratios include a PE ratio of 59.77, an EV to EBITDA of 45.05, and a ROCE of only 3.09%, which suggests that the company is not generating sufficient returns relative to its valuation.
When compared to peers, Homesfy Realty's PE ratio is significantly higher than DLF's 39.92 and Lodha Developers' 42.68, both of which are categorized as very expensive. Additionally, Homesfy's EV to EBITDA ratio of 45.05 is also higher than that of its peers, indicating that investors are paying a premium for its earnings. Despite a recent uptick in stock performance compared to the Sensex over the past week and month, the year-to-date decline of 45.69% starkly contrasts with the Sensex's gain of 5.60%, reinforcing the notion that Homesfy Realty is overvalued in its current market position.