Is Homesfy Realty overvalued or undervalued?

As of 4 November 2025, Homesfy Realty has moved from a fair to an expensive valuation grade. The company is currently considered overvalued, with a PE ratio of 45.46, an EV to EBITDA ratio of 25.49, and a ROE of only 2.90%. These metrics suggest that the stock is priced significantly higher than its earnings and cash flow generation capabilities would justify.
In comparison to its peers, Homesfy Realty's valuation stands out as particularly high. For instance, DLF has a PE ratio of 43.42 and an EV to EBITDA of 87.93, while Lodha Developers shows a PE of 36.66 and an EV to EBITDA of 27.42. Despite these peers also being classified as very expensive, Homesfy's ratios indicate a premium that may not be sustainable. Additionally, the company's stock has underperformed relative to the Sensex, with a year-to-date return of -58.83% compared to the Sensex's 8.26%, further reinforcing the notion of overvaluation.