Is EIH Assoc.Hotels overvalued or undervalued?

As of 11 July 2025, the valuation grade for EIH Associates Hotels has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 25.47, an EV to EBITDA of 17.72, and a ROE of 21.10%.
In comparison to its peers, EIH Associates Hotels stands out with a PE ratio that is significantly lower than that of Indian Hotels Co, which has a PE of 63.18, and ITC Hotels at 69.18, both categorized as very expensive. Additionally, EIH's PEG ratio of 1.48 indicates a more favorable growth valuation compared to its peers. While the stock has underperformed the Sensex over the past year, it has shown strong returns over longer periods, suggesting potential for recovery and growth.