Is Pecos Hotels overvalued or undervalued?

As of 8 August 2025, Pecos Hotels has moved from a fair to a risky valuation grade. The company appears to be overvalued based on its current financial metrics. Key ratios include a PE ratio of 20.56, an EV to EBITDA of 13.60, and a PEG ratio of 0.88, which suggests that while growth expectations may be reasonable, the current price does not reflect a compelling investment opportunity.
In comparison to its peers, Pecos Hotels' valuation stands out as significantly lower than that of Indian Hotels Co, which has a PE ratio of 61.35, and ITC Hotels, with a PE ratio of 69.47. This indicates that while Pecos Hotels is relatively cheaper, it is still categorized as risky, suggesting potential issues in its operational performance or market sentiment. Notably, the company has underperformed the Sensex over the past year, with a stock return of -31.9% compared to the Sensex's 1.23%, reinforcing the notion that the stock is currently overvalued.