Is Valencia India overvalued or undervalued?

As of 16 September 2025, the valuation grade for Valencia India has moved from fair to very expensive, indicating a significant shift in its perceived market value. The company appears to be overvalued at this time. Key ratios include a PE ratio of 19.10, an EV to EBITDA of 12.20, and a ROCE of 21.07%.
In comparison to its peers, Valencia India's PE ratio is notably lower than Indian Hotels Co, which has a PE of 65.03, and ITC Hotels, with a PE of 73.21, both of which are also classified as very expensive. Despite its strong ROCE, the overall valuation metrics suggest that Valencia India is not justified at its current price level of 31.00, especially considering its recent stock performance, which has underperformed against the Sensex over the past week and month.