Is Bharat Forge overvalued or undervalued?

As of 14 November 2024, Bharat Forge's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently considered fairly valued. Key ratios include a PE ratio of 59.98, an EV to EBITDA of 24.51, and a ROCE of 13.68%.
In comparison to its peers, Bharat Forge's PE ratio is significantly higher than that of CIE Automotive, which stands at 21.15, and Ramkrishna Forgings, which has a PE of 27.94. This suggests that Bharat Forge may be overvalued relative to these competitors. Additionally, while Bharat Forge has outperformed the Sensex in the short term with a 1-month return of 15.59% compared to the Sensex's 3.88%, its longer-term performance shows a decline of 14.93% over the past year, further complicating its valuation narrative.