Is HUDCO overvalued or undervalued?

As of 10 October 2025, HUDCO's valuation grade has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE Ratio of 16.77, an EV to EBITDA of 13.93, and a ROE of 15.08%. In comparison to peers, LIC Housing Finance is rated attractive with a PE of 5.68, while PNB Housing is deemed expensive with a PE of 10.92, highlighting the relative overvaluation of HUDCO.
Despite a solid performance over the past three years with a stock return of 539.23%, HUDCO's current valuation metrics suggest that it is not positioned favorably against its competitors. The recent stock performance has been underwhelming compared to the Sensex, particularly in the year-to-date period, where HUDCO has returned -0.75% against the Sensex's 5.58%. This reinforces the conclusion that HUDCO is overvalued in the current market environment.