Is Samhi Hotels overvalued or undervalued?

As of 2 June 2025, the valuation grade for Samhi Hotels has moved from expensive to very expensive. The company is currently considered overvalued based on its financial ratios and peer comparison. Notable ratios include a PE Ratio of 44.61, an EV to EBITDA of 16.89, and a PEG Ratio of 0.27, which suggests that despite high earnings multiples, growth expectations may not justify the price.
In comparison to its peers, Samhi Hotels has a lower PE Ratio than Indian Hotels Co. Ltd. at 66.81 and ITC Hotels at 65.26, both of which also fall under the very expensive category. However, the high valuation of Samhi Hotels relative to its earnings and the overall market conditions indicates that it is not a favorable investment at this time. Additionally, the company has outperformed the Sensex with a 1-month return of 28.18% compared to the Sensex's 3.80%, which may further complicate its valuation narrative.