Is Travels & Rent. overvalued or undervalued?

As of 29 August 2025, the valuation grade for Travels & Rent. has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently deemed overvalued. Key ratios include a PE Ratio of 14.53, an EV to EBIT of 6.77, and a Price to Book Value of 3.16, which suggest that the stock may not be justified at its current price level.
In comparison to its peers, Travels & Rent. has a PE ratio significantly lower than that of I R C T C at 42.46 and TBO Tek at 66.16, both classified as very expensive. Despite this, the company's valuation metrics still reflect a premium compared to some of its other peers like Thomas Cook (I), which is rated fair with a PE of 32.77. Notably, Travels & Rent. has experienced a year-to-date return of -56.24%, contrasting sharply with the Sensex's positive return of 2.14%, further reinforcing the view that the stock is overvalued in the current market context.