Is Sinclairs Hotels overvalued or undervalued?

As of 12 May 2025, the valuation grade for Sinclairs Hotels has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios highlight this assessment: the PE ratio stands at 34.42, the Price to Book Value is 4.15, and the EV to EBIT is 38.20.
When compared to peers, Sinclairs Hotels shows a stark contrast; for instance, Indian Hotels Co has a PE ratio of 66.81, while ITC Hotels stands at 65.26. Despite these high valuations across the sector, Sinclairs Hotels' PEG ratio is notably at 0.00, suggesting no growth expectations are factored into its price. Recent performance shows that while the stock has underperformed the Sensex year-to-date with a return of -24.08% compared to the Sensex's 5.62%, it has outperformed over a 5-year period with a return of 361.62%.