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 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 of 27.56. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Brigade Hotel's valuation stands out starkly; 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. The substantial differences in these ratios highlight that Brigade Hotel is priced significantly higher than its competitors in the Hotels & Resorts industry. Despite recent stock performance showing a slight gain of 0.54% over the past week against a Sensex decline of 1.84%, the overall valuation metrics suggest that Brigade Hotel remains overvalued in the current market context.