Is Grand Continent overvalued or undervalued?

As of 26 August 2025, the valuation grade for Grand Continent has moved from very expensive to expensive, indicating a slight improvement in perceived value. Despite this change, the company remains overvalued. The current PE ratio stands at 50.35, while the EV to EBITDA ratio is 29.32, and the Price to Book Value is 17.86, all of which are significantly higher than industry norms.
In comparison to its peers, Grand Continent's PE ratio is notably lower than that of Indian Hotels Co, which has a PE of 64.38, and ITC Hotels, with a PE of 71.33. However, it is still higher than Samhi Hotels, which has a PE of 38.22. The company's high ROCE of 31.31% and ROE of 35.47% suggest strong operational efficiency, yet these metrics do not justify the elevated valuation ratios. Recent stock performance has outpaced the Sensex, with a 1-month return of 29.54% compared to a -0.50% return for the index, but this does not alter the overall assessment of overvaluation.