Aavas Financiers Limited (AAVAS) Fair Value & Analysis
Financial Services · IN · Market cap ₹118B
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.
Price vs Fair Value (5 years)
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.
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.
All 11 models by family
Widest divergence: Earnings-Based (₹2,293) versus Asset-Based (₹426.81). Highest evidence: Growth DCF (80).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 59 · Market factors (momentum, volatility) 47
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.
of which total revenue +30.3 pp · buybacks/dilution −1.5 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 →
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.
Valuation Multiples vs Mortgage Finance median · lower = cheaper
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: 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.
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).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Federal Home Loan Mortgage Corporation FMCCT | $13.90 | $27.80 | +100% |
| Rocket Companies, Inc RKT | $14.60 | $10.95 | -25% |
| Federal National Mortgage Association FNMAS | $9.55 | $1.93 | -80% |
| Bajaj Housing Finance Limited BAJAJHFL | ₹85.07 | ₹39.96 | -53% |
| PennyMac Financial Services, Inc PFSI | $82.35 | $125.45 | +52% |
| UWM Holdings UWMC | $2.02 | $0.2200 | -89% |
| LIC Housing Finance Limited LICHSGFIN | ₹505.00 | ₹1,010 | +100% |
| PNB Housing Finance Limited PNBHOUSING | ₹1,150 | ₹762.89 | -34% |
| Aadhar Housing Finance Limited AADHARHFC | ₹496.70 | ₹501.16 | +1% |
| Walker & Dunlop, Inc WD | $48.20 | $32.55 | -32% |
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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.
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