Is Enkei Wheels overvalued or undervalued?

As of 4 November 2025, the valuation grade for Enkei Wheels has moved from fair to expensive, indicating a shift in perception regarding its market value. The company appears to be overvalued at this time. Key ratios highlight this assessment, with a PE ratio of -59.22, an EV to EBITDA of 18.18, and a Price to Book Value of 3.66, which are significantly misaligned with industry standards.
In comparison to its peers, Enkei Wheels' valuation stands out unfavorably against companies like Samvardhana Motherson, which has a PE of 32.28 and an EV to EBITDA of 11.83, and Endurance Tech, with a PE of 47.98 and an EV to EBITDA of 24.61. This stark contrast suggests that Enkei Wheels is not only overvalued relative to its peers but also struggling with negative returns, having underperformed against the Sensex in various periods, particularly with a year-to-date return of -29.06% compared to the Sensex's 6.81%.