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 perceived investment quality. The company is currently assessed as overvalued. Key ratios include a PE Ratio of 36.77, an EV to EBITDA of 32.50, and a ROCE of 7.54%.
When compared to peers, Mac Hotels' PE Ratio is notably lower than Indian Hotels Co at 64.75 and ITC Hotels at 70.51, both of which are categorized as very expensive. Additionally, the company's recent performance has been underwhelming, with a year-to-date return of -21.8%, contrasting sharply with the Sensex's 5.74% gain during the same period. This further reinforces the conclusion that Mac Hotels is currently overvalued in the market.