EN DE

Aavas Financiers Limited (AAVAS) Fair Value & Analysis

Financial Services · IN · Market cap ₹118B

AF Aavas Financiers Limited AAVAS · NSE
Price₹1,416
Fair Value₹675.38
Upside-52.3%
Quality62/100
Watch Aavas Financiers Limited for free, get notified when fair value or trend changes. Watch for free
Healthy Growth
Highly profitable · 42.1% net margin
High debt · generates free cash flow
Mixed vs. peers (6/13)
Wide moat 72/100
Evidence: High Range ₹675.38 – ₹1,342 Share as image

Fair value as of: Aug 2, 2026

From 11 valuation models · updated 11 days ago

Fair value updated Aug 2, 2026, revised from ₹1,074 to ₹675.38 (−37.1%) since Jun 29, 2026. Share price −5.5% over the past month.

A solid business, but screening 52% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹1,342). The favourable scenario is already priced in.
  • Solid but not exceptional quality (62/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (₹675.38 to ₹1,342) leaves room in how you read the outcome.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

₹3,196 ₹1,074 Fair Value ₹675.38 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range ₹1,074 – ₹3,196 · fair‑value band ₹675.38 – ₹1,342 · the ₹1,416 price screens above the ₹675.38 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 2, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Aavas Financiers Limited (AAVAS) currently trades at ₹1,416, while our model-based Fair Value estimate is ₹675.38, implying the stock looks roughly 52.3% overvalued today. The Quality Score stands at 62/100 (solid quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Aavas Financiers Limited generated revenue of ₹15.6B at a net margin of 42.1%. Revenue grew 19.2% year over year. It earns a return on equity of 13.9%. Net debt stands at ₹138B. Fundamentals as of Aug 2, 2026

Our scenario range runs from ₹675.38 (bear case) to ₹1,342 (bull case); at ₹1,416, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 34% below its 52-week high and 34% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -25% fair-value upside, at -52%, AAVAS screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹1,083 ₹3,716 80
Rev-Margin DCF ₹976.75 74
P/E Multiple ₹805.31 ₹1,074 ₹1,342 63
All 11 models by family
DCF Models
Owner Earnings ₹1,263 ₹4,790 31
5Y P/E Exit ₹431.53 ₹1,923 38
10Y P/E Exit ₹738.99 ₹2,710 35
Earnings-Based
Graham-Dodd ₹561.65 ₹3,917 ₹5,497 54
Lynch FV ₹1,605 ₹2,293 ₹2,981 50
Multiples
P/E Multiple ₹805.31 ₹1,074 ₹1,342 63
P/B Multiple ₹668.88 ₹891.84 ₹1,115 55
Asset-Based
NCAV (Graham) ₹318.51 ₹426.81 ₹637.03 50
Growth DCF
Growth DCF ₹1,083 ₹3,716 80
Rev-Margin DCF ₹976.75 74
Economic Profit
Residual Income ₹604.98 ₹745.17 ₹1,740 61

Widest divergence: Earnings-Based (₹2,293) versus Asset-Based (₹426.81). Highest evidence: Growth DCF (80).

Notify me when AAVAS reaches fair value

Free. You confirm by email (double opt-in) and can unsubscribe anytime in one click.

Key figures & financial health

Revenue (TTM) ₹15.6B
Revenue growth (YoY) +19.2%
Net margin 42.1%
Return on equity 13.9%
Free cash flow ₹7.6B FY2026
P/E ratio 18.2
More key figures
Operating margin 53.1%
EPS (TTM) ₹82.09
EPS growth (YoY) +18.3%
Net debt ₹138B FY2026

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 59 · Market factors (momentum, volatility) 47

Profitability 41
Margins and returns on capital today
Quality Growth 62
Are margins and returns improving?
Cashflow 86
Earnings quality: real cash, not paper profit
Fin. Strength 39
Balance sheet, leverage, solvency risk
Investment 47
Disciplined investing over empire-building
Low Volatility 81
Calm price path (market factor)
Momentum 37
Price trend over the last 3–12 months (market factor)
52W Momentum 24
Distance to the 52-week high (market factor)
Net Issuance 86
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Aavas Financiers Limited provides housing finance services to low- and middle-income customers in semi-urban and rural areas in India.

Full company description

Aavas Financiers Limited provides housing finance services to low- and middle-income customers in semi-urban and rural areas in India. The company offers home loans for flats, houses, and bungalows; home construction loans for self-construction of residential houses; resale property purchase loans, and home improvement loans, including loans for tiling or flooring, plaster or painting, etc. It also provides loans against property; micro, small, and medium enterprise loans; and home loan balance transfer, as well as cash salaried plus loans and small ticket size loans. The company was formerly known as AU Housing Finance Limited and changed its name to Aavas Financiers Limited in May 2017. Aavas Financiers Limited was incorporated in 2011 and is based in Jaipur, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Aavas Financiers Limited reported revenue of ₹26.8B in FY2026 versus ₹11.1B in FY2022, a compound +24.7%/yr. Reported net income was ₹6.5B in FY2026, compounding +16.5%/yr from FY2022.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹26.8B
Latest YoY
+35.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+25.6%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+23.5%
Avg. growth/yr (12Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+38.4%
Revenue +24.7%/yr
FY22 ₹11.1B
FY23 ₹13.6B
FY24 ₹16.8B
FY25 ₹19.9B
FY26 ₹26.8B
Net income +16.5%/yr
FY22 ₹3.6B
FY23 ₹4.3B
FY24 ₹4.9B
FY25 ₹5.7B
FY26 ₹6.5B
Character of growth · EPS growth decomposed (2015-2026) +34.3 % p.a.
Revenue per share +28.8 pp

of which total revenue +30.3 pp · buybacks/dilution −1.5 pp

EBIT margin −1.1 pp
Tax rate +2.0 pp
Residual (interest, one-offs) +4.6 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

AAVAS screens 52% overvalued. Compare with Federal Home Loan Mortgage Corporation →

Share or link this analysis
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "Aavas Financiers Limited Fair Value". https://www.fairvalue-calculator.com/stock/AAVAS

Peer Group

Mortgage Finance · 90 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 63 · Top 25%
Fair Value upside −52% · Below median
Return on equity (TTM) 14% · Above median
Return on assets 3% · Top 25%
Net margin (TTM) 42% · Below median
Operating margin (TTM) 53% · Below median
Revenue growth 19% · Above median
Debt / equity 3.09× · Lower than median

Valuation Multiples vs Mortgage Finance median · lower = cheaper

P/E (TTM) 18.2× · Pricier than median
P/B 2.34× · Pricier than 75% of peers
P/S (TTM) 7.61× · Pricier than 75% of peers
P/FCF 0.2× · Cheaper than 75% of peers
EV/EBITDA 29.0× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 96 · sector 79
PAST 56 · sector 55
HEALTH 0 · sector 0
DIVIDEND 0 · sector 80

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Mortgage Finance stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

Compare Aavas Financiers Limited with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Financial Services stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is Aavas Financiers Limited (AAVAS) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of ₹675.38 versus a price of ₹1,416, about −52% (overvalued).
What is the fair value of AAVAS?
Our model-based fair value for Aavas Financiers Limited is ₹675.38 (as of Aug 2, 2026), built from audited fundamentals. The current price is ₹1,416.
What is the quality score of AAVAS?
Aavas Financiers Limited has a Quality Score of 62/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Aavas Financiers Limited (AAVAS)?
Aavas Financiers Limited reported trailing-twelve-month revenue of about ₹15.6B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of AAVAS?
The net profit margin of Aavas Financiers Limited is about 42.1%, meaning it keeps roughly 42.1% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

14 days Pro free · no card

Track Aavas Financiers Limited and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.