Is China Automotive Systems, Inc. overvalued or undervalued?

Sep 20 2025 05:51 PM IST
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As of June 30, 2025, China Automotive Systems, Inc. is considered undervalued with a P/E ratio of 4 and strong performance, including a 43.02% return over the past year, compared to the S&P 500's 17.14%.
As of 30 June 2025, the valuation grade for China Automotive Systems, Inc. moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued, supported by a P/E ratio of 4, a Price to Book Value of 0.38, and an EV to EBITDA ratio of 1.65. In comparison, American Axle & Manufacturing Holdings, Inc. has a P/E of 9.51, while Cooper-Standard Holdings, Inc. shows a much higher P/E of 19.94, highlighting the relative attractiveness of China Automotive Systems.

Additionally, the company has demonstrated strong returns, outperforming the S&P 500 across various periods, including a 43.02% return over the past year compared to the S&P 500's 17.14%. This performance reinforces the notion that the stock is undervalued relative to its growth potential and market performance.
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