Is RDB Real Estate overvalued or undervalued?

As of 5 September 2025, RDB Real Estate's valuation grade has moved from very expensive to expensive, indicating a slight adjustment in its perceived value. The company is currently considered overvalued based on its high PE ratio of 181.15, an EV to EBITDA of 37.98, and a Price to Book Value of 2.39. These metrics suggest that the stock is trading at a significant premium compared to its earnings and book value.
In comparison to its peers, RDB Real Estate's PE ratio far exceeds that of DLF at 39.07 and Lodha Developers at 39.69, both of which are categorized as very expensive. Additionally, RDB's PEG ratio stands at 0.00, indicating no growth expectations priced into the stock, which further reinforces the overvaluation narrative. Recent performance shows that RDB has underperformed the Sensex, with a 1-week return of -20.08%, contrasting sharply with the Sensex's gain of 1.13%.