Is Royale Manor overvalued or undervalued?

As of 23 September 2025, Royale Manor's valuation grade has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued. Key ratios supporting this assessment include a PE ratio of 32.35, an EV to EBITDA of 26.09, and a ROCE of only 4.63%, which is notably low for the industry.
In comparison to peers, Royale Manor's PE ratio is lower than Indian Hotels Co's 62.81 and ITC Hotels' 70.67, but still reflects a premium valuation. The EV to EBITDA ratio also positions Royale Manor above EIH's 22.54, while its PEG ratio stands at 0.00, suggesting no growth expectations are priced in. Despite recent stock performance showing a 1-year return of 11.86% versus the Sensex's -3.33%, the overall valuation metrics indicate that Royale Manor is not justified at its current price level.