Is Endurance Tech overvalued or undervalued?

As of 30 June 2025, the valuation grade for Endurance Tech has moved from fair to expensive, indicating a shift in its market perception. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 47.16, a Price to Book Value of 6.82, and an EV to EBITDA of 24.58. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Endurance Tech's PE ratio significantly exceeds that of Samvardhana Motherson, which stands at 28.64, and Motherson Wiring, which has a PE of 43.6, indicating that Endurance Tech is priced much higher relative to its earnings potential. Additionally, the company's ROCE of 20.86% and ROE of 14.46% are respectable but do not justify the elevated valuation levels when compared to the industry benchmarks. While Endurance Tech has outperformed the Sensex in various time frames, including a year-to-date return of 28.65% versus the Sensex's 7.00%, the current valuation suggests caution for potential investors.