Is Peninsula Land overvalued or undervalued?

As of 1 July 2025, the valuation grade for Peninsula Land has moved from expensive to very expensive, indicating a significant deterioration in its valuation appeal. The company is currently deemed overvalued. Key ratios highlight this concern, with a PE ratio of -42.66, an EV to EBITDA ratio of 109.21, and a Price to Book Value of 3.89, all suggesting that the stock is priced excessively compared to its earnings and book value.
In comparison to its peers, Peninsula Land's valuation metrics are starkly unfavorable. For instance, DLF has a PE ratio of 44.66 and an EV to EBITDA of 98.62, while Macrotech Development shows a PE of 50.22 and an EV to EBITDA of 35.96. These comparisons further emphasize Peninsula Land's overvaluation. Notably, despite a recent surge in stock price with a 1-week return of 11.73% compared to the Sensex's 2.00%, the long-term performance has been disappointing, with a 1-year return of -57.11% versus the Sensex's 5.31%, reinforcing the notion that the stock is not a sound investment at its current valuation.