Is Brigade Hotel overvalued or undervalued?

As of 29 August 2025, Brigade Hotel's valuation grade has moved from does not qualify to very expensive, indicating a significant shift in its market perception. The company is currently assessed as overvalued, with a PE ratio of 197.21, a Price to Book Value of 29.50, and an EV to EBITDA of 27.56. These ratios are substantially higher than its peers, such as Indian Hotels Co, which has a PE of 63.35 and an EV to EBITDA of 37.29, and ITC Hotels with a PE of 71.01 and an EV to EBITDA of 40.50.
In comparison to the broader market, Brigade Hotel's stock has shown a slight positive return of 0.54% over the past week, while the Sensex has declined by 1.84%. This performance, however, does not mitigate the concerns raised by its high valuation metrics, reinforcing the conclusion that Brigade Hotel is currently overvalued in the market.