Is Roopshri Resorts overvalued or undervalued?

As of 17 October 2025, Roopshri Resorts' valuation grade has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 94.54, an EV to EBITDA ratio of 34.18, and a ROE of only 2.89%. These ratios suggest that investors are paying a premium for the stock relative to its earnings and book value.
In comparison to its peers, Roopshri Resorts stands out with a notably high PE ratio compared to Indian Hotels Co at 61.42 and ITC Hotels at 64.65, both of which are also categorized as very expensive. Additionally, Roopshri's EV to Sales ratio of 23.41 further emphasizes its overvaluation when compared to the industry standards. Despite its strong stock performance, with a year-to-date return of 43.73% compared to the Sensex's 7.44%, the current valuation metrics indicate that the stock is not justified at its current price of 58.93.