Is Mahindra Holiday overvalued or undervalued?

As of 3 November 2025, Mahindra Holiday's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 49.75, an EV to EBITDA of 15.66, and a Price to Book Value of 0.91, which suggest that despite a high PE ratio, the overall valuation remains appealing compared to its peers.
In comparison to its industry peers, Mahindra Holiday's PE ratio is lower than that of Indian Hotels Co, which stands at 62.31, and ITC Hotels, which has a PE of 64.61. This positions Mahindra Holiday favorably within the sector, especially given its attractive valuation amidst a backdrop of overvalued competitors. While the stock has underperformed the Sensex over the past year, it has shown resilience with a 3-year return of 18.79%, reflecting potential for recovery and growth in the long term.