Is PNB Housing overvalued or undervalued?

As of 1 July 2025, PNB Housing's valuation grade has moved from fair to attractive, indicating a positive shift in its market positioning. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE Ratio of 14.84, an EV to EBITDA of 12.37, and a PEG Ratio of 0.53, which suggests that the stock is priced favorably relative to its earnings growth potential.
In comparison to its peers, PNB Housing's valuation appears more favorable than HUDCO, which has a PE of 17.78, and Aavas Financiers, which is significantly more expensive with a PE of 33.01. Additionally, LIC Housing Finance stands out as very attractive with a much lower PE of 6.18. The recent performance of PNB Housing has also outpaced the Sensex, with a year-to-date return of 25.55% compared to the Sensex's 7.11%, reinforcing its undervalued status in the market.