Is MakeMyTrip Ltd. overvalued or undervalued?

As of 22 July 2025, the valuation grade for MakeMyTrip Ltd. has moved from very expensive to risky, indicating a shift in its perceived value. The company appears to be overvalued, especially when considering its high P/E ratio of 116, a Price to Book Value of 9.17, and an EV to EBITDA ratio of 71.63. In comparison, peers like Match Group, Inc. have a P/E of 17.35 and XP, Inc. boasts a much lower EV to EBITDA of 7.06, highlighting the significant premium at which MakeMyTrip is trading.
Despite the company's strong historical returns, including a remarkable 469.59% over the past five years, it has underperformed against the S&P 500 in the last year, with a return of -6.13% compared to the index's 17.14%. This underperformance, coupled with its high valuation ratios, suggests that MakeMyTrip Ltd. may be overvalued relative to its peers and the broader market.