Is Yatra Online overvalued or undervalued?

As of 4 July 2025, Yatra Online's valuation grade has moved from expensive to fair. The company is currently fairly valued, with a PE ratio of 35.66, an EV to EBITDA ratio of 28.91, and a PEG ratio of 0.04. In comparison to its peers, Yatra's valuation metrics are more favorable than those of I R C T C, which has a PE ratio of 48.85 and an EV to EBITDA of 38.97, and TBO Tek, with a PE of 70.70 and an EV to EBITDA of 52.02.
Despite the fair valuation, Yatra Online has experienced significant underperformance compared to the Sensex, with a year-to-date return of -28.11% against the Sensex's 6.77%. This underperformance may suggest that the market is still cautious about the company's growth prospects, even as its valuation appears reasonable in relation to its peers.