Is Roopshri Resorts overvalued or undervalued?

As of 17 October 2025, Roopshri Resorts has moved from a grade of risky to very expensive. The company is currently overvalued, as indicated by its high PE ratio of 94.54, an EV to EBIT ratio of 34.18, and a Price to Book Value of 2.73. These figures suggest that the stock is trading at a significant premium compared to its earnings and book value.
In comparison to its peers, Roopshri Resorts stands out with a PE ratio that is notably higher than Indian Hotels Co at 61.42 and ITC Hotels at 64.65, both of which are also classified as very expensive. Furthermore, while Roopshri has a PEG ratio of 0.09, indicating potential growth, it is still overshadowed by competitors like Mahindra Holiday, which has a more reasonable PE of 51.58. Despite Roopshri's impressive stock performance, with a year-to-date return of 43.73% compared to the Sensex's 7.44%, the valuation metrics suggest that the stock is not justified at its current price level.