Is Bosch overvalued or undervalued?

As of 21 May 2025, Bosch's valuation grade has moved from very expensive to expensive, indicating a slight improvement in perceived value but still reflecting high valuation metrics. The company is currently considered overvalued, with a PE ratio of 46.21, a Price to Book Value of 6.74, and an EV to EBITDA of 39.75. These ratios suggest that Bosch is trading at a premium compared to its peers.
In comparison to notable competitors, Samvardhan Motherson, which is rated attractive, has a significantly lower PE ratio of 29.14 and an EV to EBITDA of 11.53, highlighting the disparity in valuation. Other peers such as Uno Minda and ZF Commercial are also trading at higher multiples, with PE ratios of 66.72 and 57.04, respectively. Despite Bosch's recent stock performance showing a 5.54% return over the past month compared to the Sensex's 3.86%, the overall valuation metrics indicate that Bosch remains overvalued in the current market context.