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 appears to be overvalued based on its current financial metrics, with a PE ratio of -59.22, an EV to EBITDA of 18.18, and a Price to Book Value of 3.66. These ratios indicate significant concerns regarding profitability and valuation relative to its assets.
In comparison to its peers, Enkei Wheels stands out unfavorably; for instance, Bosch has a PE ratio of 51.41 and an EV to EBITDA of 46.44, while Samvardhana Motherson has a more attractive PE ratio of 32.35 and an EV to EBITDA of 11.86. Furthermore, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -29.06% compared to the Sensex's 7.44%. This underperformance further supports the conclusion that Enkei Wheels is overvalued in the current market environment.