Is Pecos Hotels overvalued or undervalued?

As of 8 August 2025, Pecos Hotels' valuation grade has moved from fair to risky, indicating a shift in perception regarding its financial health and market position. The company is currently considered overvalued. Key ratios reveal a PE Ratio of 20.56, an EV to EBITDA of 13.60, and a PEG Ratio of 0.88, which, while showing some potential for growth, suggest that the stock may not justify its current price given the broader market context.
In comparison to its peers, Pecos Hotels stands out with a PE Ratio significantly lower than that of Indian Hotels Co at 61.35 and ITC Hotels at 69.47, both categorized as very expensive. Additionally, the company's return over the past year has been notably poor at -31.9%, contrasting sharply with the Sensex's modest gain of 1.23%. This performance, alongside the elevated valuation metrics relative to its peers, reinforces the conclusion that Pecos Hotels is currently overvalued in the market.