Is Robust Hotels overvalued or undervalued?

As of 7 January 2025, the valuation grade for Robust Hotels has moved from does not qualify to very attractive, indicating a significant positive shift in its valuation outlook. The company is currently deemed undervalued. Key ratios include a PE ratio of 24.78, an EV to EBITDA of 14.95, and a PEG ratio of 0.10, all of which suggest that the stock may be trading below its intrinsic value relative to its earnings growth potential.
In comparison to its peers, Robust Hotels stands out with a much lower PE ratio than Indian Hotels Co. Ltd., which has a PE of 66.81, and ITC Hotels at 65.26, both categorized as very expensive. This stark contrast in valuation metrics reinforces the attractiveness of Robust Hotels. Additionally, the company's stock has outperformed the Sensex over the past year, with a return of 36.69% compared to the Sensex's 7.55%, further supporting the conclusion that Robust Hotels is undervalued in the current market environment.