Is Autoliv, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Autoliv, Inc. has moved from fair to very attractive, indicating a strong improvement in its valuation outlook. The company appears undervalued, supported by a P/E ratio of 15, a PEG ratio of 0.80, and an EV to EBITDA ratio of 8.08, all of which suggest that the stock is trading at a discount relative to its earnings growth potential and cash flow generation capabilities.
In comparison to peers, Autoliv's P/E ratio is lower than that of Donaldson Co., Inc. at 28.15, which is considered very expensive, while it is also more favorable than Lear Corp.'s P/E of 9.51, which is classified as expensive. Additionally, the company's return metrics are noteworthy, with a year-to-date return of 25.78% compared to the S&P 500's 13.30%, reinforcing the attractiveness of the stock relative to the broader market.