Is LIC Housing Fin. overvalued or undervalued?

As of 2 September 2025, the valuation grade for LIC Housing Finance has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently undervalued, with a price-to-earnings (PE) ratio of 5.56, a price-to-book value of 0.84, and an EV to EBITDA ratio of 11.16. These metrics suggest that LIC Housing Finance is trading at a discount compared to its peers.
In comparison to notable competitors, HUDCO is considered very expensive with a PE ratio of 15.55, while PNB Housing is rated attractive with a PE of 10.06. The PEG ratio for LIC Housing Finance stands at an impressive 0.35, further reinforcing its undervalued status. Despite recent stock performance lagging behind the Sensex, particularly over the past year with a decline of 17.53% compared to a 2.91% drop in the Sensex, the fundamental ratios suggest that LIC Housing Finance presents a compelling investment opportunity.