Yatra Online Ltd Valuation Shifts Signal Changing Market Sentiment

Valuation Metrics Reflect Elevated Pricing

As of 13 Feb 2026, Yatra Online’s price-to-earnings (P/E) ratio stands at 45.41, a significant premium compared to historical averages and many peers within the travel services industry. This figure marks a clear departure from its previous fair valuation status, now categorised as expensive. The price-to-book value (P/BV) ratio has also risen to 3.20, underscoring the market’s willingness to pay a higher premium for the company’s net assets.

Other valuation multiples further illustrate this trend. The enterprise value to EBITDA (EV/EBITDA) ratio is elevated at 29.87, while the enterprise value to EBIT (EV/EBIT) ratio reaches 55.52. These multiples are considerably higher than those of some peers, such as Thomas Cook (India), which trades at a more attractive P/E of 21.00 and EV/EBITDA of 10.40. This divergence highlights Yatra Online’s premium positioning in the sector.

Comparative Peer Analysis

Within the Tour and Travel Related Services industry, Yatra Online’s valuation stands alongside other expensive stocks like TBO Tek and Le Travenues, which exhibit even higher P/E ratios of 68.38 and 157.46 respectively. However, Yatra’s PEG ratio of 0.40 suggests that despite the high P/E, the company’s earnings growth prospects may justify some of the premium, contrasting with peers that have PEG ratios closer to zero or significantly higher, such as Thomas Cook’s 11.39.

Easy Trip Planners, another peer, trades at a P/E of 36.17 and EV/EBITDA of 36.62, indicating that Yatra Online’s valuation is high but not the most stretched in the sector. This nuanced positioning suggests investors are factoring in Yatra’s growth potential and market share gains, even as the stock commands a premium.

Stock Price Performance and Market Capitalisation

Yatra Online’s current market price is ₹166.35, up from a previous close of ₹150.30, marking a robust day change of 10.68%. The stock has traded within a 52-week range of ₹65.70 to ₹201.85, reflecting significant volatility but also strong upward momentum over the past year. Indeed, the company’s one-year return of 94.18% vastly outpaces the Sensex’s 9.85% gain over the same period, underscoring investor enthusiasm.

Despite this strong price appreciation, the company’s market cap grade remains modest at 3, indicating a mid-cap status that may appeal to investors seeking growth opportunities within a less crowded market segment.

Financial Performance and Returns Analysis

Yatra Online’s return on capital employed (ROCE) is relatively low at 5.18%, while return on equity (ROE) stands at 6.82%. These modest profitability metrics contrast with the high valuation multiples, suggesting that the market is pricing in significant future growth or operational improvements. Investors should weigh these factors carefully, as the current premium may be vulnerable if growth expectations are not met.

Examining returns over various periods reveals a mixed picture. The stock has delivered a stellar 94.18% return over the past year, far exceeding the Sensex’s 9.85% gain. However, year-to-date (YTD) returns are negative at -4.09%, slightly worse than the Sensex’s -1.81%, indicating some recent volatility or profit-taking. Shorter-term returns remain strong, with a 15.4% gain over the past week and 2.27% over the last month, signalling renewed buying interest.

Valuation Grade Downgrade and Market Implications

MarketsMOJO recently downgraded Yatra Online’s mojo grade from Buy to Hold on 29 Dec 2025, reflecting the shift in valuation from fair to expensive. The current mojo score of 58.0 supports a cautious stance, suggesting that while the stock remains fundamentally sound, the elevated multiples warrant prudence. This downgrade aligns with the broader market’s reassessment of richly valued travel stocks amid evolving macroeconomic conditions and sector-specific challenges.

Investors should consider the company’s valuation in the context of its growth prospects, competitive positioning, and sector dynamics. While Yatra Online’s premium multiples indicate confidence in its future, the relatively low profitability ratios and recent price volatility highlight the risks inherent in such a valuation.

Investor Takeaway: Balancing Growth and Valuation Risks

Yatra Online Ltd’s current valuation profile reflects a market that is optimistic about the company’s growth trajectory but increasingly cautious about paying a premium. The elevated P/E and P/BV ratios, combined with high EV multiples, suggest that investors are pricing in strong future earnings growth and operational leverage. However, the company’s modest ROCE and ROE figures indicate that profitability improvements will be critical to justify these valuations over the medium term.

Comparisons with peers reveal that while Yatra Online is expensive, it is not the most overvalued in its sector. Investors should monitor quarterly earnings, margin trends, and sector developments closely to assess whether the premium is sustainable. The recent mojo grade downgrade to Hold serves as a reminder to balance enthusiasm with caution.

In summary, Yatra Online remains a compelling growth story within the Tour and Travel Related Services sector, but its current valuation demands careful scrutiny. Investors seeking exposure to this space should consider the trade-off between potential upside and valuation risk, ensuring portfolio diversification and risk management remain priorities.

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