Is Homesfy Realty overvalued or undervalued?

As of 4 November 2025, Homesfy Realty's valuation grade has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued based on its high PE ratio of 45.46, an EV to EBIT of 42.57, and a Price to Book Value of 1.32. These ratios suggest that the stock is trading at a premium compared to its earnings and asset value.
In comparison to its peers, Homesfy Realty's PE ratio is higher than DLF's 43.42 and Lodha Developers' 36.66, both of which are also classified as very expensive. Additionally, Homesfy's PEG ratio stands at 0.00, indicating no growth expectations priced into the stock, which is concerning given the current market sentiment. The company's recent stock performance has been notably poor, with a year-to-date return of -58.83%, significantly underperforming the Sensex's gain of 8.26% during the same period, further reinforcing the view that Homesfy Realty is overvalued.