Is Playa Hotels & Resorts NV overvalued or undervalued?

As of 6 March 2025, Playa Hotels & Resorts NV has moved from a fair to an expensive valuation grade. The company is currently considered overvalued, with a P/E ratio of 28, which is significantly higher than its peers, such as Monarch Casino & Resort, Inc. at 16.45 and Target Hospitality Corp. at 15.25. Additionally, Playa's EV to EBITDA stands at 6.84, while Monarch's is 8.63, indicating that Playa is trading at a premium relative to its competitors.
Key ratios further highlight this overvaluation, with a Price to Book Value of 3.19 and a PEG Ratio of 1.23. Despite a robust ROCE of 48.62% and a respectable ROE of 11.43%, the high valuation metrics suggest that the stock may not offer sufficient upside relative to its current price of 13.48. Over the past year, Playa has outperformed the S&P 500 with a return of 58.78%, but this performance does not mitigate the concerns regarding its current valuation.