Is Apollo Tyres overvalued or undervalued?

As of 15 May 2024, Apollo Tyres' valuation grade has moved from very attractive to attractive, indicating a slight shift in its perceived value. The company is currently considered fairly valued. Key ratios include a PE ratio of 24.09, an EV to EBITDA of 9.36, and a ROCE of 11.34%.
In comparison to its peers, Apollo Tyres' PE ratio is lower than MRF's 31.76 and Balkrishna Industries' 29.20, while it is on par with CEAT's 31.21. The company's dividend yield stands at 1.27%, which is competitive within the industry. Notably, Apollo Tyres has underperformed against the Sensex in the short term, with a year-to-date return of -11.21% compared to the Sensex's 5.59%.