Is CEAT overvalued or undervalued?

As of 24 October 2025, CEAT's valuation grade has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently considered undervalued, with a PE ratio of 31.99, an EV to EBITDA ratio of 11.64, and a ROCE of 14.13%. In comparison to its peers, MRF has a higher PE ratio of 37.74 and an EV to EBITDA of 16.98, while Apollo Tyres, also attractive, has a PE of 30.31 and an EV to EBITDA of 9.99.
CEAT's recent stock performance has significantly outpaced the Sensex, with a year-to-date return of 27.95% compared to the Sensex's 7.77%. This strong performance reinforces the notion that CEAT is undervalued relative to its growth potential and market position within the Tyres & Rubber Products industry.