Is Oriental Hotels overvalued or undervalued?

As of 14 July 2025, the valuation grade for Oriental Hotels has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued, with a PE ratio of 67.60, an EV to EBITDA ratio of 25.66, and a Price to Book Value of 3.89. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Oriental Hotels has a higher PE ratio than Indian Hotels Co, which stands at 62.56, and ITC Hotels, which has a PE of 68.97. Additionally, the EV to EBITDA ratio for Oriental Hotels is lower than that of Indian Hotels Co but higher than EIH, which has an EV to EBITDA of 22.29. Despite a recent positive stock return of 2.81% over the past week, the overall trend shows a decline of 14.34% year-to-date, contrasting with the Sensex's gain of 5.27% in the same period. This further reinforces the view that Oriental Hotels is currently overvalued.