Is Delta Corp overvalued or undervalued?

As of 12 February 2025, Delta Corp's valuation grade has moved from attractive to very attractive, indicating a positive shift in its market perception. The company is currently assessed as undervalued. Key ratios supporting this conclusion include a PE ratio of 17.95, an EV to EBITDA of 12.94, and a Price to Book Value of 0.92, all of which suggest that the stock is trading at a discount relative to its earnings and assets.
In comparison to its peers, Delta Corp stands out with its PE ratio of 17.95, significantly lower than Indian Hotels Co at 66.81 and ITC Hotels at 65.26, both of which are categorized as very expensive. Additionally, Delta's EV to EBITDA of 12.94 further emphasizes its relative value against the high valuations of its competitors. Despite recent underperformance compared to the Sensex, where Delta has seen a 1-year return of -21.61% versus the Sensex's 7.58%, the current valuation metrics suggest that Delta Corp presents a compelling investment opportunity.