Is Saj Hotels overvalued or undervalued?

As of 14 November 2025, the valuation grade for Saj Hotels has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on its key ratios, including a PE ratio of 27.07, an EV to EBITDA of 13.46, and a ROCE of 4.49%. In comparison to its peers, Saj Hotels' valuation appears high, especially when looking at Indian Hotels Co with a PE of 60.76 and ITC Hotels at 62.36, both categorized as very expensive.
Given these metrics, Saj Hotels is positioned unfavorably within its industry, suggesting that the stock may not provide sufficient returns relative to its current price. The recent stock performance shows a year-to-date return of 25.39%, significantly outpacing the Sensex's return of 9.58%, but this may not be sustainable given the current overvaluation. Overall, Saj Hotels is deemed overvalued in the current market context.