Is Travels overvalued or undervalued?

As of 2 January 2025, the valuation grade for Travels has moved from very expensive to does not qualify, indicating a significant shift in its market perception. The company is currently deemed overvalued. Key ratios include a PE ratio of 21.15, an EV to EBITDA of 15.43, and a ROCE of 22.49%.
In comparison to peers, Travels' PE ratio is notably lower than that of Indian Railway Catering & Tourism Corp. Ltd., which stands at 48.77, and TBO Tek, which has a PE ratio of 66.15. This suggests that while Travels may be overvalued, it is still more attractive than some of its more expensive peers. Additionally, the company's recent stock performance shows a 1-month return of 14.29%, significantly outperforming the Sensex return of 3.80%, which could indicate some investor optimism despite the overall valuation concerns.