Is Pecos Hotels overvalued or undervalued?

As of 11 August 2025, Pecos Hotels has moved from a risky to a fair valuation grade. The company is currently fairly valued based on its financial ratios, including a PE ratio of 19.14, an EV to EBITDA of 12.51, and a PEG ratio of 0.82. These metrics suggest that the company is positioned reasonably within its industry, especially when compared to peers such as Mahindra Holiday, which has a PE ratio of 55.09, and Indian Hotels Co, which is considered very expensive with a PE ratio of 62.23.
In terms of performance, Pecos Hotels has experienced a significant decline in stock value year-to-date, down 24.15%, while the Sensex has gained 3.15% in the same period. This divergence highlights the potential for recovery as the company stabilizes at its current valuation level. Overall, Pecos Hotels appears to be fairly valued, offering a reasonable investment opportunity in the leisure services sector.