Is Playa Hotels & Resorts NV overvalued or undervalued?

As of 6 March 2025, the valuation grade for Playa Hotels & Resorts NV has moved from fair to expensive. The company is currently considered overvalued based on its valuation metrics. Key ratios include a P/E ratio of 28, a Price to Book Value of 3.19, and an EV to EBITDA of 6.84, which are higher than the industry averages indicated by peer comparison, such as the peer's P/E ratio of approximately 27.87 and EV to EBITDA of 6.84.
In terms of performance, Playa Hotels & Resorts NV has shown impressive returns, with a 1-year return of 58.78% compared to the S&P 500's 17.14%, and a 5-year return of 254.74% against the S&P 500's 96.61%. This strong performance, while notable, does not mitigate the current overvaluation indicated by the ratios.