Is Autoliv, Inc. overvalued or undervalued?

As of 14 April 2025, Autoliv, Inc. has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 15, an EV to EBITDA of 8.08, and a PEG ratio of 0.80, which suggests that despite its strong earnings potential, the stock price may not be justified relative to its growth rate.
In comparison to peers, Autoliv's P/E ratio of 15.26 is higher than Aptiv Plc's 7.26 and lower than Donaldson Co., Inc.'s 23.66, indicating a mixed competitive landscape. The company's return on equity (ROE) stands at 28.44%, which is commendable, but the overall valuation metrics suggest that it is trading at a premium compared to its peers. Recent stock performance shows that while Autoliv has outperformed the S&P 500 year-to-date with a return of 17.75%, its one-year return of 2.02% lags behind the index's 10.26%, reinforcing the notion of overvaluation.