Is Brigade Hotel overvalued or undervalued?

As of 16 October 2025, Brigade Hotel's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently deemed overvalued based on its high PE ratio of 182.31, a Price to Book Value of 27.27, and an EV to EBITDA of 25.75. These ratios starkly contrast with peers such as Indian Hotels Co, which has a PE ratio of 61.63, and EIH, with a PE ratio of 31.22, highlighting Brigade Hotel's substantial premium.
Given these metrics, Brigade Hotel is classified as overvalued. The company's financial performance, reflected in its ROCE of 15.38% and ROE of 14.96%, does not justify the lofty valuation multiples it commands. Additionally, the recent stock performance shows a decline of 0.95% over the past week, while the Sensex has gained 1.58%, further emphasizing the disconnect between Brigade Hotel's valuation and market trends.