Is Royale Manor overvalued or undervalued?

As of 14 November 2025, Royale Manor's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued, with a PE ratio of 32.74, an EV to EBITDA of 25.55, and a ROCE of only 4.63%. These metrics suggest that the stock is trading at a premium compared to its earnings and capital efficiency.
In comparison to its peers, Royale Manor's PE ratio is notably lower than that of Indian Hotels Co at 60.76 and ITC Hotels at 62.36, both of which are also categorized as very expensive. However, Royale Manor's EV to EBITDA ratio is higher than that of EIH, which stands at 22.3, further emphasizing its overvaluation. Despite a strong long-term performance with a 5-year return of 227.56%, recent trends show a decline, with a year-to-date return of -22.96%, contrasting with the Sensex's 8.22% gain, reinforcing the notion that the stock may not be a favorable investment at its current price.