Is PNB Housing overvalued or undervalued?

As of 19 September 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 11.14, a Price to Book Value of 1.35, and an EV to EBITDA of 11.09. In comparison to its peers, HUDCO is considered very expensive with a PE ratio of 16.48, while LIC Housing Finance is very attractive at a PE of 5.92.
Despite the fair valuation, PNB Housing has shown mixed performance in stock returns compared to the Sensex. Over the past year, the stock has decreased by 14.53%, while the Sensex has only declined by 0.67%. However, over a three-year period, PNB Housing has significantly outperformed the Sensex with a return of 135.72% compared to 39.71%. This suggests that while the current valuation may be fair, the stock has potential for growth based on its historical performance.