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 financial standing. The company is currently assessed as overvalued, with a PE ratio of 36.77, an EV to EBITDA ratio of 32.50, and a Price to Book Value of 3.18. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Mac Hotels' PE ratio is notably lower than that of Indian Hotels Co, which has a PE of 64.75, and ITC Hotels, with a PE of 70.51, both classified as very expensive. Despite this, Mac Hotels still does not qualify for a favorable valuation grade, reflecting concerns about its financial performance, particularly with a ROCE of 7.54% and a ROE of 2.42%. 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% in the same period, further reinforcing the perception of overvaluation.