Is Keystone Realtor overvalued or undervalued?

As of 7 July 2025, the valuation grade for Keystone Realtor has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 46.97, an EV to EBIT of 40.35, and an EV to EBITDA of 37.87. These ratios suggest that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.
In comparison to its peers, Keystone Realtor's valuation metrics are notably high. For instance, DLF has a PE ratio of 44.07 and an EV to EBITDA of 97.32, while Macrotech Development shows a PE of 49.75 and an EV to EBITDA of 35.64. This positions Keystone Realtor at the higher end of the spectrum within its industry. Additionally, while the company has shown a strong one-month return of 17.36% against the Sensex's 1.53%, its year-to-date performance of -5.71% contrasts sharply with the Sensex's 6.79%, further reinforcing the notion that the stock may be overvalued.