Is Sobha overvalued or undervalued?
As of July 4, 2025, Sobha is considered very expensive and overvalued with a PE ratio of 171.90, significantly higher than its peers DLF and Macrotech Developers, and has underperformed the Sensex with a 1-year return of -25.28%.
As of 4 July 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 171.90, a Price to Book Value of 3.57, and an EV to EBITDA ratio of 53.18. These metrics suggest that Sobha is trading at a premium compared to its peers.In comparison to its industry, Sobha's PE ratio is substantially higher than that of DLF, which stands at 44.25, and Macrotech Developers at 49.37. This stark contrast in valuation ratios highlights Sobha's overvaluation. Additionally, while Sobha has experienced a 4.63% return over the past week, it has underperformed the Sensex over the longer term, with a 1-year return of -25.28% compared to the Sensex's 4.23%. This further reinforces the conclusion that Sobha is currently overvalued in the market.
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