Is Ratnabhumi Dev. overvalued or undervalued?

As of 24 June 2025, the valuation grade for Ratnabhumi Development has moved from very attractive to attractive. The company is currently considered overvalued based on its high price-to-earnings (PE) ratio of 55.91, a price-to-book value of 7.85, and an EV to EBITDA ratio of 22.01. These ratios indicate that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Ratnabhumi's PE ratio is significantly higher than DLF's 45.02 and Macrotech Development's 53.00, which are also considered very expensive. The PEG ratio of 0.03 suggests that the stock may be overvalued relative to its growth prospects, especially when compared to peers like Prestige Estates, which has a PEG ratio of 0.00. Despite the recent strong performance of Ratnabhumi's stock, which has outpaced the Sensex returns over various periods, the current valuation metrics suggest that the stock is overvalued.