Is Pecos Hotels overvalued or undervalued?

As of 8 September 2025, the valuation grade for Pecos Hotels has moved from very expensive to expensive, indicating a slight improvement in perceived value but still reflecting a high valuation. The company is currently considered overvalued based on its financial ratios, with a PE Ratio of 28.41, a Price to Book Value of 6.17, and an EV to EBITDA of 19.67. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to peers, Pecos Hotels' PE Ratio is significantly lower than that of Indian Hotels Co at 65.07 and ITC Hotels at 71.75, both of which are categorized as very expensive. However, the high valuation of Pecos Hotels still places it in an expensive bracket relative to the broader market. Notably, while the stock has shown a remarkable 485.19% return over the past three years, it has underperformed the Sensex over the last year, which may reinforce concerns about its current valuation.