Is PNB Housing overvalued or undervalued?

As of 10 October 2025, PNB Housing's valuation grade has moved from attractive to expensive, indicating a shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 10.92, an EV to EBITDA of 11.03, and a ROE of 11.48%. In comparison to its peers, HUDCO is classified as very expensive with a PE ratio of 16.77, while LIC Housing Finance is rated attractive with a significantly lower PE of 5.68. This suggests that PNB Housing is trading at a premium compared to some of its competitors, despite its relatively lower growth potential indicated by a PEG ratio of 0.40. Additionally, the stock has underperformed the Sensex over the past year, with a return of -10.04% compared to the Sensex's 1.09%, further reinforcing the notion of overvaluation.