Is GIR Natureview overvalued or undervalued?

As of 9 July 2020, the valuation grade for GIR Natureview has moved from very expensive to risky, indicating a significant shift in its perceived value. The company is currently assessed as overvalued. Key ratios highlight this concern, with a PE ratio of 213.51, an EV to EBITDA of 213.30, and a Price to Book Value of 10.73, all of which are substantially higher than industry norms.
In comparison to its peers, GIR Natureview's valuation metrics are starkly elevated. For instance, Indian Hotels Co has a PE ratio of 66.81 and an EV to EBITDA of 39.96, while ITC Hotels shows a PE ratio of 65.26 and an EV to EBITDA of 37.12, both indicating a more reasonable valuation in the same sector. The company's lack of dividend yield and low ROCE of 0.49% further underscore its overvaluation. Notably, GIR Natureview has not provided stock returns over the past year, contrasting with the Sensex's 7.81% return, which emphasizes the disconnect in performance expectations.