Is Oriental Hotels overvalued or undervalued?

As of 3 July 2025, the valuation grade for Oriental Hotels has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 66.30, an EV to EBITDA of 25.19, and a Price to Book Value of 3.81. Compared to peers, Indian Hotels Co has a PE of 64.31, while ITC Hotels stands at 65.78, both categorized as very expensive, reinforcing the relative attractiveness of Oriental Hotels.
Despite its fair valuation, Oriental Hotels has experienced a decline in stock performance recently, with a year-to-date return of -15.99% compared to a 6.53% increase in the Sensex. This underperformance may present a buying opportunity for investors, especially considering its strong long-term performance, with a 5-year return of 636.96%.