Is Royale Manor overvalued or undervalued?

As of 4 July 2025, Royale Manor's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently overvalued, with a PE ratio of 30.04, an EV to EBITDA of 23.21, and a ROE of 5.06%. In comparison, Indian Hotels Co has a much higher PE ratio of 64.21, while EIH stands close with a PE of 30.24, both of which highlight the premium at which Royale Manor is trading relative to its peers.
Despite a notable 1-year stock return of 9.57%, which outperformed the Sensex's 4.23%, the company's financial metrics suggest that it is not justified at its current price level. The PEG ratio of 0.00 further emphasizes the lack of growth expectations priced into the stock, reinforcing the conclusion that Royale Manor is overvalued in the current market environment.