Is Enkei Wheels overvalued or undervalued?

As of 17 October 2025, Enkei Wheels has moved from a fair to an expensive valuation grade. The company is currently overvalued, as indicated by its significant negative PE ratio of -59.22, a price-to-book value of 3.66, and an EV to EBITDA ratio of 18.18. These ratios suggest that the market is pricing the company at a premium despite its poor financial performance, including a return on equity (ROE) of -6.18%.
In comparison to its peers, Enkei Wheels stands out negatively; for instance, Bosch has a PE ratio of 51.41 and an EV to EBITDA of 46.44, while Samvardhan Motherson is more attractively valued with a PE of 32.35 and an EV to EBITDA of 11.86. The stark contrast in these ratios highlights that Enkei Wheels is not only overvalued relative to its own financial metrics but also compared to its industry peers. Additionally, the company's stock has underperformed significantly against the Sensex, with a year-to-date return of -29.06% compared to the Sensex's 7.44%, reinforcing the notion of overvaluation.