Is CIE Automotive overvalued or undervalued?

As of 22 July 2025, CIE Automotive's valuation grade has moved from attractive to very attractive, indicating a stronger position in the market. The company is currently considered undervalued, with a PE ratio of 20.50, an EV to EBITDA of 11.78, and a PEG ratio of 0.00, suggesting significant growth potential relative to its price.
In comparison to its peers, CIE Automotive stands out favorably against Bharat Forge, which has a PE ratio of 55.73, and Ramkrishna Forgings at 26.9, both indicating that CIE Automotive is trading at a much lower valuation despite its strong performance metrics. Additionally, the company's return on capital employed (ROCE) is 17.49%, which further supports its undervalued status. While CIE Automotive has underperformed the Sensex in the short term, its long-term performance over 5 years shows a remarkable return of 285.81%, reinforcing its potential as a solid investment opportunity.