Is Embassy Develop overvalued or undervalued?

As of 30 May 2025, the valuation grade for Embassy Develop has moved from risky to very expensive, indicating a significant shift in its perceived market value. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 119.66, an EV to EBITDA of 281.06, and a Price to Book Value of 1.68. These figures suggest that investors are paying a premium for the stock compared to its earnings and book value.
In comparison to its peers, Embassy Develop's valuation stands out starkly; for instance, DLF has a PE ratio of 46.64 and an EV to EBITDA of 103.02, while Macrotech Development shows a PE of 54.71 and an EV to EBITDA of 39.08. These comparisons further reinforce the notion that Embassy Develop is overvalued in the current market. Additionally, while the company's recent stock performance has outpaced the Sensex over the past week and month, its year-to-date and one-year returns are notably negative, further highlighting the disconnect between its valuation and actual performance.