Is UVS Hospitality overvalued or undervalued?

As of 1 October 2025, UVS Hospitality's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 29.54, an EV to EBITDA of 19.94, and a PEG ratio of 0.01, which suggests that the stock is priced favorably relative to its earnings growth potential.
In comparison to its peers, UVS Hospitality's PE ratio is lower than Bajaj Finance's 35.27, which is classified as very expensive, while Life Insurance, deemed very attractive, has a significantly lower PE of 11.74. This positions UVS Hospitality favorably within its sector, especially considering its strong return on capital employed (ROCE) of 13.86% and return on equity (ROE) of 10.16%. Despite recent underperformance compared to the Sensex on a year-to-date basis, the long-term returns over 3 years and 5 years indicate substantial growth potential, reinforcing the attractiveness of the current valuation.