Is Keystone Realtor overvalued or undervalued?

As of 6 August 2025, the valuation grade for Keystone Realtor has moved from expensive to very expensive, indicating a significant shift in its perceived valuation. The company is currently overvalued, as evidenced by its high PE ratio of 46.60, EV to EBIT of 44.27, and EV to EBITDA of 40.69. 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 PE ratio is notably higher than DLF's 39.57 and Lodha Developers' 41.34, both of which are also classified as very expensive. Additionally, Keystone's PEG ratio of 0.61 is lower than DLF's 0.58, indicating that despite its high valuation, it may not be justified by its growth prospects. Furthermore, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -12.6% compared to the Sensex's 3.08%, reinforcing the notion that the stock may be overvalued in the current market environment.