Is Escorts Kubota overvalued or undervalued?

As of 5 September 2025, the valuation grade for Escorts Kubota has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently overvalued based on its key financial ratios, which include a Price to Earnings (PE) ratio of 28.55, a Price to Book Value of 3.98, and an EV to EBITDA ratio of 32.33. These figures suggest that the stock is priced at a premium compared to its earnings and book value.
In comparison to its peers, Escorts Kubota's PE ratio is lower than VST Till. Tract. at 39.73 but higher than Indo Farm Equip., which has a PE of 52.22. This places Escorts Kubota in a challenging position within the industry, especially given that its PEG ratio of 0.69 indicates potential growth at a reasonable price, yet the overall high valuation suggests that the stock may not provide sufficient upside relative to its current price. Despite a strong performance relative to the Sensex over the past three years, with a return of 82.49% compared to 36.23%, the current valuation metrics point towards an overvalued status for Escorts Kubota.