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 shift towards a more favorable assessment. The company appears undervalued based on several key ratios, including a P/E ratio of 15, a PEG ratio of 0.80, and an EV to EBITDA ratio of 8.08. In comparison, peers like Donaldson Co., Inc. exhibit a much higher P/E ratio of 28.15, while Allison Transmission Holdings, Inc. shows a more attractive P/E of 9.98, highlighting Autoliv's relative value within the industry.
Despite a recent decline in stock price, Autoliv has outperformed the S&P 500 year-to-date with a return of 25.78% compared to the index's 13.30%. This performance, coupled with strong returns over the past year of 25.65% against the S&P 500's 14.08%, reinforces the notion that Autoliv is currently undervalued in the market.