Is Keystone Realtor overvalued or undervalued?

As of 8 August 2025, Keystone Realtor's valuation grade has moved from very expensive to expensive, indicating a slight easing in its perceived overvaluation. The company is currently considered overvalued based on its high PE ratio of 45.50, an EV to EBITDA of 39.74, and a Price to Book Value of 2.64. In comparison to its peers, DLF has a PE ratio of 38.62 and an EV to EBITDA of 82.12, while Lodha Developers shows a PE of 40.45 and an EV to EBITDA of 29.53, both of which highlight Keystone's relatively high valuation metrics.
Despite the recent downgrade in valuation grade, Keystone Realtor's performance has lagged behind the Sensex, with a year-to-date return of -14.66% compared to the Sensex's positive return of 2.20%. This underperformance, combined with its elevated valuation ratios, suggests that the company remains overvalued in the current market environment.