Is Mac Hotels overvalued or undervalued?

As of 2 June 2025, the valuation grade for Mac Hotels has moved from does not qualify to risky, indicating a shift in perception regarding its financial stability and growth prospects. The company appears to be overvalued, particularly given its PE ratio of 21.60 and an EV to EBITDA ratio of 24.10, which are relatively high compared to the industry norms. Additionally, the negative book value reflected in the Price to Book ratio further complicates its valuation.
In comparison to peers, Mac Hotels' valuation metrics stand out, with a PEG ratio of 0.00, suggesting no growth expectations, while its EV to Sales ratio of 6.50 raises concerns about its revenue generation relative to its enterprise value. Notably, competitors in the industry may offer more attractive valuations, which could lead investors to reconsider their positions in Mac Hotels. Recent performance shows that the stock has underperformed against the Sensex, particularly in the year-to-date period, where it has dropped by 13.77% compared to the Sensex's gain of 5.60%.