Is Oriental Hotels overvalued or undervalued?

As of 3 October 2025, the valuation grade for Oriental Hotels has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 51.74, an EV to EBITDA of 21.09, and a PEG ratio of 3.37, which indicate a premium valuation relative to its earnings growth prospects.
In comparison to its peers, Oriental Hotels has a lower PE ratio than Indian Hotels Co, which stands at 60.56, and ITC Hotels, which is at 65.13, both categorized as very expensive. However, it is worth noting that Mahindra Holiday, also fairly valued, has a PE ratio of 54.81, suggesting that while Oriental Hotels is not the cheapest option, it is positioned more favorably than some of its more expensive competitors. Despite a challenging year with a YTD return of -21.10% compared to the Sensex's 3.93%, the long-term performance remains strong, with a 5-year return of 550.95%.