Is Saj Hotels overvalued or undervalued?

As of 28 July 2025, the valuation grade for Saj Hotels has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 26.45, an EV to EBITDA ratio of 13.09, and a Price to Book Value of 0.86. In comparison to its peers, Saj Hotels stands out as more reasonably priced than Indian Hotels Co, which has a PE ratio of 62.26, and ITC Hotels, which has a PE ratio of 70.15.
While Saj Hotels has a relatively low ROCE of 4.49% and ROE of 3.26%, its PEG ratio of 0.00 suggests that it may have growth potential not reflected in its current price. The stock has performed well year-to-date, returning 22.55%, significantly outpacing the Sensex's 4.38% during the same period, reinforcing the notion that it is fairly valued in the current market context.