Is LIC Housing Fin. overvalued or undervalued?

As of 22 August 2025, LIC Housing Finance has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, with a PE ratio of 5.63, a Price to Book Value of 0.85, and an EV to EBITDA of 11.17. These ratios indicate a strong position compared to its peers, particularly HUDCO, which has a PE ratio of 15.24 and is considered very expensive, and PNB Housing, which has a PE of 10.25 and is rated as attractive.
In addition to its favorable valuation metrics, LIC Housing Finance boasts a PEG ratio of 0.36 and a dividend yield of 3.38%, further reinforcing its attractiveness. Despite recent stock performance showing a decline compared to the Sensex, with a 1-year return of -17.50% against the Sensex's 0.31%, the underlying fundamentals suggest that the stock is a compelling investment opportunity at its current price of 562.80.