Is LIC Housing Fin. overvalued or undervalued?

As of 10 October 2025, the valuation grade for LIC Housing Finance has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently considered undervalued, with a price-to-earnings (PE) ratio of 5.68, a price-to-book value of 0.86, and an EV to EBITDA ratio of 11.18. These ratios suggest that the stock is trading at a significant discount compared to its earnings and book value.
In comparison to its peers, LIC Housing Finance stands out with a notably lower PE ratio than HUDCO, which is at 16.77, and PNB Housing, which has a PE of 10.92. The PEG ratio of 0.36 further emphasizes its undervaluation relative to peers, many of which are categorized as very expensive. Despite recent underperformance against the Sensex, particularly in the one-year and year-to-date periods, the fundamental metrics suggest that LIC Housing Finance presents a compelling investment opportunity at its current price of 568.40.