Is Craftsman Auto overvalued or undervalued?

As of 1 September 2025, Craftsman Auto has moved from a fair to an expensive valuation grade. The company appears overvalued based on its current metrics, which include a PE Ratio of 73.37, an EV to EBITDA of 21.44, and a Price to Book Value of 5.98. These ratios indicate that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Craftsman Auto's PE Ratio is significantly higher than Rail Vikas, which stands at 55.26, and AIA Engineering, with a PE of 26.39. The company's PEG Ratio is notably at 0.00, suggesting no growth expectations factored into its valuation, which contrasts sharply with peers like Triveni Turbine, which has a PEG of 2.63. Despite the overvaluation, Craftsman Auto has outperformed the Sensex in various time frames, including a year-to-date return of 33.07% compared to the Sensex's 2.85%.