Is Escorts Kubota overvalued or undervalued?

As of 4 September 2025, the valuation grade for Escorts Kubota has moved from very expensive to expensive, indicating a slight improvement in perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 28.13, an EV to EBITDA of 31.81, and a PEG ratio of 0.68, which suggests that while growth expectations may be favorable, the current price does not adequately reflect the underlying fundamentals.
In comparison with peers, Escorts Kubota's PE ratio of 28.13 is lower than VST Till. Tract. at 40 but higher than Indo Farm Equip. which has a PE of 51.6, indicating a mixed competitive landscape. The company's return over the past year has been -3.56%, while the Sensex returned -1.98%, suggesting that the stock has underperformed relative to the broader market. Overall, the combination of high valuation ratios and relative performance points to a conclusion that Escorts Kubota is overvalued in the current market environment.