Is Prestige Estates overvalued or undervalued?

As of 16 November 2023, Prestige Estates has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, reflected by a PE ratio of 157.37, a Price to Book Value of 4.77, and an EV to EBITDA of 32.63. These ratios indicate a significant premium over typical market valuations, suggesting that investors are paying a high price relative to the company's earnings and asset values.
In comparison to its peers, Prestige Estates stands out with its exceptionally high PE ratio, while DLF and Macrotech Development have PE ratios of 46.64 and 54.71, respectively. This stark contrast highlights that Prestige Estates is trading at a much higher valuation than its competitors. Additionally, despite recent stock performance showing a 32.77% return over the past month compared to a 3.87% return for the Sensex, the overall valuation metrics indicate that the stock is not justified at its current price level.