Is Bajaj Auto overvalued or undervalued?

As of 17 November 2025, Bajaj Auto has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 30.03, an EV to EBITDA ratio of 22.51, and a ROE of 24.38%. In comparison to peers, Eicher Motors is considered very expensive with a PE of 36.57, while TVS Motor Co. is also fairly valued at a PE of 63.24. Bajaj Auto's valuation metrics indicate it is positioned competitively within the industry, particularly with its solid ROCE of 23.72%. The stock has performed well over the long term, with a 3-year return of 142.44%, significantly outpacing the Sensex's 37.57% during the same period. Overall, the analysis suggests that Bajaj Auto is fairly valued in the current market context.