Is Brigade Hotel overvalued or undervalued?

As of 29 August 2025, the valuation grade for Brigade Hotel has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 197.21, a Price to Book Value of 29.50, and an EV to EBITDA ratio of 27.56, all of which are considerably higher than industry peers. For instance, Indian Hotels Co has a PE ratio of 63.35 and an EV to EBITDA of 37.29, while ITC Hotels shows a PE of 71.01 and an EV to EBITDA of 40.50.
Given these ratios, Brigade Hotel's valuation appears excessive compared to its peers, suggesting that investors may be paying a premium that is not justified by its financial performance. The company's recent stock performance has outpaced the Sensex over the past week, returning 0.54% compared to the Sensex's decline of 1.84%, but this short-term gain does not mitigate the overall overvaluation indicated by the fundamental metrics.