Is Pecos Hotels overvalued or undervalued?

As of 21 August 2025, Pecos Hotels has moved from a very attractive to a fair valuation grade. The company appears to be overvalued based on its current metrics. Key ratios include a PE Ratio of 20.88, an EV to EBITDA of 13.85, and a PEG Ratio of 0.90, which, while competitive, do not justify the current price given the overall market conditions and peer comparisons.
In comparison to its peers, Pecos Hotels has a PE Ratio significantly lower than Indian Hotels Co, which stands at 66.49, and ITC Hotels at 74.4, both of which are considered very expensive. Although Pecos Hotels has a strong ROCE of 69.68% and a ROE of 21.72%, its recent stock performance has lagged behind the Sensex, particularly over the past year, where it has returned -34.06% compared to the Sensex's 1.35%. This underperformance, coupled with the current valuation metrics, suggests that Pecos Hotels is overvalued in the current market environment.