Is Escorts Kubota overvalued or undervalued?

As of 5 September 2025, the valuation grade for Escorts Kubota has moved from expensive to very expensive. This indicates that the company is currently overvalued. Key ratios include a PE ratio of 28.55, an EV to EBITDA of 32.33, and a PEG ratio of 0.69, which suggests that despite a relatively low PEG, the overall valuation metrics are high compared to historical standards.
In comparison to its peers, VST Tillers Tractors has a PE ratio of 39.73 and an EV to EBITDA of 29.60, while Indo Farm Equipment is even more expensive with a PE of 52.22. These comparisons highlight that Escorts Kubota, while classified as very expensive, is still more reasonably priced than some of its peers. Additionally, the company's stock has outperformed the Sensex over the past three years, with a return of 82.49% compared to the Sensex's 36.23%, reinforcing the notion of its current overvaluation.