Is Pecos Hotels overvalued or undervalued?

As of 12 August 2025, Pecos Hotels has moved from a fair to a very attractive valuation grade, indicating a significant improvement in its investment appeal. The company is currently considered undervalued, with a PE ratio of 18.31, an EV to EBITDA of 11.87, and a PEG ratio of 0.79, suggesting that the stock is trading at a discount relative to its growth prospects.
In comparison to its peers, Pecos Hotels stands out as a more attractive investment option. For instance, Indian Hotels Co has a PE ratio of 62.48, while ITC Hotels has a PE of 68.07, both categorized as very expensive. The strong return on capital employed (ROCE) of 69.68% and return on equity (ROE) of 21.72% further reinforce the company's solid financial performance. Despite recent underperformance relative to the Sensex, with a year-to-date return of -27.45% compared to the Sensex's 2.68%, the valuation metrics suggest that Pecos Hotels presents a compelling buying opportunity.