Is Ashok Leyland overvalued or undervalued?

As of 17 November 2025, Ashok Leyland's valuation grade has moved from attractive to fair, indicating a shift in its market perception. The company is currently fairly valued, with a PE ratio of 25.85, an EV to EBITDA of 13.29, and a PEG ratio of 0.83. These ratios suggest that while the company remains competitive, it is no longer seen as a strong buy compared to its previous standing.
In comparison to its peers, Ashok Leyland's valuation metrics are relatively moderate. For instance, Force Motors is rated as attractive with a PE ratio of 28.27, while SML Mahindra is considered expensive with a PE of 29.17. Notably, Ashok Leyland has outperformed the Sensex in various timeframes, including a year-to-date return of 34.57% compared to the Sensex's 8.72%, reinforcing its competitive position in the market.