Is Sobha overvalued or undervalued?

Jun 09 2025 03:35 PM IST
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As of June 3, 2025, Sobha is considered very expensive with a PE ratio of 189.75 and high valuation metrics compared to peers, despite a recent strong stock performance.
As of 3 June 2025, Sobha'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 189.75, a Price to Book Value of 3.94, and an EV to EBITDA ratio of 58.93. These ratios suggest that Sobha is trading at a premium compared to its earnings and book value.

In comparison to peers, DLF has a PE ratio of 46.64 and an EV to EBITDA of 103.02, while Macrotech Developers shows a PE of 54.71 and an EV to EBITDA of 39.08, both of which highlight Sobha's elevated valuation metrics. Despite a strong recent stock performance, with a 1-month return of 35.25% compared to the Sensex's 3.86%, the overall valuation remains concerning given the high ratios and the shift in grade.
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