Is Royale Manor overvalued or undervalued?

As of 19 September 2025, Royale Manor's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 31.81, an EV to EBITDA of 25.67, and a ROE of 4.70%.
In comparison to its peers, Royale Manor's PE ratio is significantly lower than that of Indian Hotels Co, which has a PE of 64.75, and ITC Hotels, which stands at 70.51. Despite being categorized as expensive, Royale Manor's financial metrics suggest that it does not justify its current valuation, especially given its low ROCE of 4.63%. While the stock has shown strong long-term performance, its recent underperformance against the Sensex, particularly with a year-to-date return of -14.44% compared to the Sensex's 5.74%, reinforces the view that it is overvalued at present.