Is Adient plc overvalued or undervalued?

As of 28 January 2025, the valuation grade for Adient plc has moved from expensive to risky, indicating a shift in perception regarding its market position. Based on the current metrics, Adient appears to be overvalued, particularly when considering its P/E ratio of 7, which is significantly lower than peers such as Autoliv, Inc. with a P/E of 18.06 and Lear Corp. at 9.51. Additionally, Adient's EV to EBITDA ratio of 3.96 and Price to Book Value of 0.81 suggest that the company is trading at a discount relative to its peers, but the overall valuation remains concerning.
In terms of performance, Adient's stock has shown a YTD return of 46.37%, outperforming the S&P 500's return of 12.22% during the same period. However, over the longer term, the 3-year return of -21.29% starkly contrasts with the S&P 500's 70.41%, highlighting potential volatility and risk. Overall, while Adient has had some recent positive performance, the valuation metrics suggest it is overvalued compared to its industry peers.