Is Oriental Hotels overvalued or undervalued?

As of 20 October 2025, the valuation grade for Oriental Hotels has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, particularly when compared to its peers in the hotel and resort industry. Key ratios include a PE ratio of 45.41, an EV to EBITDA of 25.53, and a Price to Book Value of 0.32, which suggest that despite a high PE ratio, the overall valuation remains favorable relative to its book value.
In comparison to peers, Oriental Hotels has a PE ratio of 45.41, while Indian Hotels Co has a much higher PE of 62.08, and ITC Hotels stands at 65.5, both categorized as very expensive. Additionally, the EV to EBITDA ratio for Oriental Hotels is lower than that of Indian Hotels Co at 36.54 and ITC Hotels at 37.26, reinforcing its undervaluation. Despite recent stock performance lagging behind the Sensex, particularly with a year-to-date return of -27.45% compared to the Sensex's 7.97%, the long-term outlook remains strong with a 5-year return of 531.66%.