Is HUDCO overvalued or undervalued?

As of 15 September 2025, HUDCO's valuation grade has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently considered overvalued. Key ratios include a PE Ratio of 16.08, an EV to EBITDA of 13.76, and a PEG Ratio of 0.65, which suggests that while the earnings growth potential is favorable, the overall valuation remains high compared to its earnings.
In comparison to its peers, HUDCO's valuation stands out unfavorably; for instance, LIC Housing Finance has a PE of 5.72 and PNB Housing has a PE of 10.67, both indicating more attractive valuations. Despite a recent strong performance in the short term, with a 1-week return of 2.67% compared to the Sensex's 1.24%, the longer-term outlook shows that HUDCO has underperformed with a year-to-date return of -4.9% against the Sensex's 4.67%. This further reinforces the conclusion that HUDCO is overvalued in its current market context.