Is Asian Hotels (E) overvalued or undervalued?

As of 12 February 2024, the valuation grade for Asian Hotels (E) has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently assessed as undervalued. Key ratios include a PE Ratio of 13.83, an EV to EBITDA of 19.10, and a Price to Book Value of 1.00, which suggest that the company is trading at a reasonable valuation compared to its earnings and asset base.
In comparison to its peers, Asian Hotels (E) stands out with a significantly lower PE ratio than Indian Hotels Co, which has a PE of 66.81, and ITC Hotels, which has a PE of 65.26, both categorized as very expensive. The PEG ratio for Asian Hotels is 0.00, further reinforcing its undervaluation relative to the industry. Additionally, while the stock has underperformed the Sensex on a year-to-date basis with a return of -18.55% compared to the Sensex's 5.58%, its long-term performance over five years shows a gain of 67.97%, which is still below the Sensex's 142.95%. This disparity highlights the potential for recovery and growth in the company's valuation.