Is HUDCO overvalued or undervalued?

As of 8 September 2025, HUDCO's valuation grade has moved from very expensive to expensive, indicating a shift in its perceived market value. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE Ratio of 15.68, an EV to EBITDA of 13.66, and a PEG Ratio of 0.63, which suggests that while the company is generating earnings, its growth potential may not justify its current price.
When compared to peers, HUDCO's valuation appears less attractive. For instance, LIC Housing Finance has a PE Ratio of 5.6 and an EV to EBITDA of 11.17, indicating it is very attractive relative to HUDCO. Similarly, PNB Housing, with a PE of 10.26, also presents a more favorable valuation. Despite HUDCO's recent stock performance showing a 2.89% return over the past week against a 0.53% return for the Sensex, its year-to-date performance of -7.37% compared to the Sensex's 3.39% suggests that it may not be a compelling investment at its current price.