Is CIE Automotive overvalued or undervalued?
As of November 12, 2024, CIE Automotive is fairly valued with a PE ratio of 21.15 and a dividend yield of 2.70%, showing a more favorable valuation compared to peers like Bharat Forge and Sona BLW Precision, while also achieving a solid ROCE of 17.49% despite mixed stock performance relative to the Sensex.
As of 12 November 2024, CIE Automotive's valuation grade has moved from very attractive to attractive. The company is currently considered fairly valued. Key ratios include a PE ratio of 21.15, an EV to EBITDA of 12.17, and a dividend yield of 2.70%. In comparison to its peers, CIE Automotive's PE ratio is significantly lower than Bharat Forge's 59.98 and Sona BLW Precision's 51.71, indicating a more favorable valuation relative to these companies. Additionally, while CIE Automotive has a PEG ratio of 0.00, indicating no growth expectations priced in, it is worth noting that its return on capital employed (ROCE) stands at a solid 17.49%. Despite recent stock performance being underwhelming compared to the Sensex over the past year, CIE Automotive has outperformed the index in the shorter term, with a 1-month return of 13.79% versus the Sensex's 3.86%.
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