Is Pecos Hotels overvalued or undervalued?

As of 11 July 2025, Pecos Hotels has moved from a fair to very attractive valuation grade. The company is currently undervalued, with a PE ratio of 18.32, an EV to EBITDA of 12.42, and a PEG ratio of 0.79, indicating strong growth potential relative to its price. Notably, Pecos Hotels boasts a remarkable ROCE of 70.65% and an ROE of 25.78%, which further supports its attractive valuation.
When compared to its peers, Pecos Hotels stands out significantly; for instance, Indian Hotels Co has a PE ratio of 63.18, while ITC Hotels shows an even higher PE of 69.18, both categorized as very expensive. This stark contrast highlights Pecos Hotels' relative value in the market. Despite recent stock performance trailing the Sensex, with a year-to-date return of -27.4% compared to the Sensex's 5.58%, the underlying fundamentals suggest that Pecos Hotels is a compelling investment opportunity.