Is HB Estate Devel. overvalued or undervalued?

As of 1 April 2025, the valuation grade for HB Estate Development has moved from attractive to very attractive, indicating a stronger investment appeal. The company is currently assessed as undervalued, particularly when considering its key ratios: a PE ratio of 18.48, an EV to EBITDA of 10.79, and a PEG ratio of 0.12. These figures suggest that the company is trading at a significant discount relative to its earnings growth potential.
In comparison to its peers, HB Estate Development stands out with a much lower PE ratio than Indian Hotels Co, which has a PE of 66.81, and ITC Hotels, which has a PE of 65.26. This stark contrast in valuation metrics highlights the attractiveness of HB Estate Development in the current market. Additionally, while the company's recent stock performance has shown a decline of 1.17% over the past week, it has outperformed the Sensex over the past year with a return of 32.93% compared to the Sensex's 7.62%, reinforcing the notion of its undervaluation.