Is Escorts Kubota overvalued or undervalued?

As of 16 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 considered overvalued. Key ratios highlight this assessment, with a PE ratio of 28.40, an EV to EBITDA of 32.14, and a Price to Book Value of 3.96. In comparison to its peers, Escorts Kubota's PE ratio is lower than VST Till. Tract. at 39.47 but significantly higher than Indo Farm Equip. which has a PE of 54.77. Additionally, the PEG ratio of 0.69 suggests that while the company may have growth potential, its current valuation does not reflect a favorable investment opportunity. Despite recent stock performance showing a YTD return of 10.19% compared to the Sensex's 5.43%, the overall valuation indicates that Escorts Kubota is overvalued in the current market.