Is Cindrella Hotels overvalued or undervalued?

As of 5 December 2024, the valuation grade for Cindrella Hotels has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued. Key ratios include a PE Ratio of 22.50, an EV to EBITDA of 13.19, and a Price to Book Value of 1.92, which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Cindrella Hotels has a lower PE ratio than Indian Hotels Co, which stands at 66.81, and ITC Hotels, with a PE of 65.26. However, it is important to note that the PEG ratio for Cindrella is 0.00, indicating no expected growth, which is a notable outlier in this analysis. While Cindrella Hotels has outperformed the Sensex over the long term, with a 3-year return of 151.05% compared to the Sensex's 49.20%, the current valuation metrics suggest that investors may want to exercise caution.