Is Autoliv, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Autoliv, Inc. moved from fair to very attractive, indicating a shift towards a more favorable assessment. 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. In comparison to peers, Autoliv's P/E ratio is lower than Donaldson Co., Inc. at 28.15 and higher than Allison Transmission Holdings, Inc. at 9.98, suggesting a competitive position within its industry.
Additionally, Autoliv has demonstrated strong financial performance with a ROE of 28.44% and a dividend yield of 2.42%. While the stock has outperformed the S&P 500 year-to-date with a return of 25.78% compared to the index's 13.30%, it has lagged over longer periods, such as the 3-year and 5-year returns. Overall, the current valuation metrics and peer comparisons reinforce the conclusion that Autoliv, Inc. is undervalued.