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. 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 metrics suggest that the stock is trading at a significant discount compared to its peers, such as HUDCO, which has a PE ratio of 16.77, and PNB Housing, which stands at 10.92.
Despite a recent decline in stock performance, with a year-to-date return of -5.11% compared to the Sensex's 5.58%, the underlying financial ratios indicate that LIC Housing Finance remains an attractive investment opportunity. The PEG ratio of 0.36 further reinforces the undervaluation narrative, suggesting that the stock is well-positioned for future growth relative to its earnings potential.