Is RDB Real Estate overvalued or undervalued?

As of 30 October 2025, RDB Real Estate's valuation grade has moved from very expensive to expensive, indicating a slight improvement in perceived value. However, the company remains overvalued based on its current financial metrics. The price-to-earnings (PE) ratio stands at an exceptionally high 175.61, while the price-to-book value is 2.29 and the EV to EBITDA ratio is 34.61, all of which suggest that the stock is trading at a premium compared to its earnings and asset values.
In comparison to its peers, RDB Real Estate's PE ratio is significantly higher than that of DLF at 40.16 and Lodha Developers at 39.59, both categorized as very expensive. Additionally, the company's return on equity (ROE) is a mere 1.30%, which is considerably lower than the industry average, further supporting the conclusion of overvaluation. Recent stock performance shows a 9.01% increase over the past week, contrasting with a slight decline in the Sensex, but this does not alter the overall valuation perspective.