Is RDB Real Estate overvalued or undervalued?

As of 5 September 2025, the valuation grade for RDB Real Estate has moved from very expensive to expensive, indicating a slight shift in perception but still reflecting a high valuation. The company is currently considered overvalued. Key ratios include a PE ratio of 181.15, an EV to EBITDA of 37.98, and a Price to Book Value of 2.39, all of which are significantly higher than industry norms.
In comparison to peers, RDB Real Estate's PE ratio is notably higher than DLF's 39.07 and Lodha Developers' 39.69, both categorized as very expensive. The company's return metrics are also concerning, with a ROCE of only 2.56% and an ROE of 1.32%, which suggest inefficiencies in generating returns relative to its high valuation. Furthermore, the stock has underperformed recently, with a 1-week return of -20.08% compared to a 1.13% gain in the Sensex, reinforcing the notion of overvaluation.