Is Homesfy Realty overvalued or undervalued?

As of 28 August 2025, Homesfy Realty's valuation grade has moved from fair to expensive. The company is currently overvalued, with a PE ratio of 58.46, an EV to EBIT ratio of 73.28, and an EV to EBITDA ratio of 43.88. In comparison to peers, DLF has a PE ratio of 38.78 and an EV to EBITDA of 82.46, while Lodha Developers shows a PE of 40.93 and an EV to EBITDA of 29.86, both indicating that Homesfy Realty is trading at a premium relative to its competitors.
The company's return metrics also raise concerns, with a ROCE of just 3.09% and an ROE of 3.70%, suggesting inefficiencies in generating returns on capital. Furthermore, Homesfy Realty has underperformed the Sensex significantly, with a year-to-date stock return of -47.06% compared to the Sensex's positive return of 3.62%. This combination of high valuation ratios and poor performance indicates that Homesfy Realty is not a favorable investment at its current price of 270.00.