Is KHFM Hospitality overvalued or undervalued?

As of 28 August 2025, KHFM Hospitality's valuation grade has moved from fair to very expensive, indicating a significant shift in its market perception. The company appears overvalued based on its current metrics, with a PE ratio of 52.72, a Price to Book Value of 3.65, and an EV to EBITDA ratio of 20.06. These figures suggest that investors are paying a premium for the stock relative to its earnings and book value.
In comparison to its peers, KHFM Hospitality's PE ratio is notably lower than Max Healthcare's 93.61 and Fortis Health's 74.36, both of which are also classified as very expensive. However, it is higher than Apollo Hospitals, which is rated as attractive with a PE of 70.56. Despite a strong historical performance over three and five years, recent returns show a decline, with a year-to-date drop of 14.05% compared to a 3.62% gain in the Sensex, reinforcing the notion that KHFM Hospitality is currently overvalued.