Is The Byke Hospi. overvalued or undervalued?

As of 20 August 2025, the valuation grade for The Byke Hospitality has moved from very expensive to expensive. Based on the analysis, the company appears to be overvalued. The PE ratio stands at 83.41, while the EV to EBITDA ratio is 9.06, indicating a significant premium compared to its peers. The Return on Capital Employed (ROCE) is relatively low at 6.52%, and the Return on Equity (ROE) is just 2.27%, suggesting inefficiencies in generating returns relative to its equity base.
In comparison to its peers, The Byke Hospitality's PE ratio is notably higher than that of Indian Hotels Co, which has a PE of 67.47, and ITC Hotels at 73.38. The high valuation ratios, coupled with the company's recent stock performance—showing a year-to-date decline of 26.80% against a Sensex return of 4.76%—reinforce the conclusion that The Byke Hospitality is currently overvalued in the market.