Is Pecos Hotels overvalued or undervalued?
As of July 11, 2025, Pecos Hotels is considered very attractive and undervalued compared to peers in the leisure services industry, with strong growth potential indicated by a PE ratio of 18.32, an EV to EBITDA of 12.42, and a PEG ratio of 0.79, despite a year-to-date stock performance lagging behind the Sensex.
As of 11 July 2025, Pecos Hotels has moved from a fair to a very attractive valuation grade. The company appears to be undervalued, especially when compared to its peers in the leisure services industry. Key ratios include a PE ratio of 18.32, an EV to EBITDA of 12.42, and a PEG ratio of 0.79, indicating strong earnings growth potential relative to its price.In contrast, notable peers such as Indian Hotels Co and ITC Hotels are significantly overvalued, with PE ratios of 63.18 and 69.18, respectively. Pecos Hotels' impressive ROCE of 70.65% and ROE of 25.78% further support its valuation as attractive. Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -27.4% compared to the Sensex's 5.58%, the underlying fundamentals suggest that Pecos Hotels is positioned for recovery and growth.
Our weekly and monthly stock recommendations are here
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