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, while indicating some growth potential, do not justify its current price given the overall market context.
In comparison to its peers, Pecos Hotels' valuation stands out unfavorably. For instance, Indian Hotels Co has a PE Ratio of 61.35, and ITC Hotels has a PE Ratio of 69.47, both categorized as very expensive. Despite its high ROCE of 69.68% and ROE of 21.72%, the stock's performance has been lackluster, with a year-to-date return of -18.56% compared to a 2.20% gain in the Sensex. This suggests that investors may be reassessing the company's growth prospects, reinforcing the notion that Pecos Hotels is currently overvalued.