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 its valuation outlook. However, the company remains overvalued based on its current financial metrics. The PE ratio stands at 50.64, while the EV to EBITDA ratio is 29.47, both significantly higher than industry norms. The ROE is impressive at 35.47%, but this does not sufficiently justify the high valuation multiples.
In comparison to its peers, Grand Continent's PE ratio is lower than Indian Hotels Co at 64.26 and ITC Hotels at 71.33, yet it is still positioned in the expensive category. The EV to EBITDA ratio of 29.47 is also higher than that of EIH at 24.00, further supporting the conclusion of overvaluation. While the stock has outperformed the Sensex over the past week and month, this short-term performance does not alter the overall valuation assessment.