Is PNB Housing overvalued or undervalued?

As of 22 July 2025, PNB Housing's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 13.87, an EV to EBITDA of 11.84, and a PEG ratio of 0.50. In comparison to its peers, HUDCO has a higher PE ratio of 16.65, while LIC Housing Finance stands out with a very attractive PE of 6.26, suggesting that PNB Housing is positioned in the middle of the pack among its competitors.
Despite its fair valuation, PNB Housing has shown strong performance with a year-to-date return of 23.41%, significantly outperforming the Sensex's 5.18% during the same period. This performance, combined with a ROE of 11.48% and a ROCE of 9.28%, reflects the company's ability to generate returns, although it remains to be seen if it can maintain this momentum in a competitive market.