Is Oriental Hotels overvalued or undervalued?

As of 8 October 2025, the valuation grade for Oriental Hotels has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently considered undervalued, especially when compared to its peers in the hospitality sector. Key financial ratios include a PE ratio of 49.14, an EV to EBITDA of 20.11, and a PEG ratio of 3.20, which suggest that while the company has a high valuation, it still offers potential growth relative to its price.
In comparison to its peers, Oriental Hotels stands out with a lower PE ratio than Indian Hotels Co, which has a PE of 60.96, and ITC Hotels at 64.09, both categorized as very expensive. Despite its relatively high valuation metrics, the attractiveness of Oriental Hotels is reinforced by its competitive positioning within the industry. Notably, while the stock has underperformed against the Sensex in the short term, its long-term performance over the past five years shows a remarkable return of 524.28%, significantly outpacing the Sensex's 103.50%.