Is Mac Hotels overvalued or undervalued?

As of 19 September 2025, the valuation grade for Mac Hotels has moved from risky to does not qualify, indicating a significant shift in its assessment. The company appears to be overvalued based on its current metrics, with a PE Ratio of 36.77, an EV to EBITDA of 32.50, and a Price to Book Value of 3.18. These ratios suggest that the stock is priced high relative to its earnings and book value, especially when compared to peers like Indian Hotels Co, which has a PE Ratio of 64.75, and ITC Hotels, with a PE Ratio of 70.51.
In the context of peer comparisons, Mac Hotels' valuation does not align favorably, as it is categorized as "does not qualify" while its peers are deemed "very expensive." The lack of a PEG Ratio and a low ROE of 2.42% further support the conclusion that Mac Hotels is overvalued. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -21.8%, contrasting sharply with the Sensex's gain of 5.74%.