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 deemed overvalued based on its financial ratios. The PE Ratio stands at 31.81, while the EV to EBITDA is 25.67, and the Price to Book Value is 1.49. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
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, with a PE of 70.51. Despite this, Royale Manor's valuation remains on the higher side within its industry. Notably, the company's ROCE and ROE are relatively low at 4.63% and 4.70%, respectively, which further supports the conclusion of overvaluation. Recent stock performance shows that while Royale Manor has outperformed the Sensex over the long term, it has underperformed year-to-date, which may reflect investor concerns about its current valuation.