Is Forge Auto overvalued or undervalued?

Oct 16 2025 08:04 AM IST
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As of October 15, 2025, Forge Auto is considered very expensive and overvalued compared to its peers, with a PE ratio of 16.39, despite outperforming the Sensex year-to-date with an 85.83% return.
As of 15 October 2025, the valuation grade for Forge Auto has moved from expensive to very expensive. This indicates a significant shift in perception regarding its market value. The company is currently considered overvalued, especially when compared to its peers in the castings and forgings industry. Key ratios include a PE ratio of 16.39, an EV to EBITDA of 10.70, and a ROE of 16.37%.

In comparison to peers, Bharat Forge is rated fair with a PE of 57.48, while CIE Automotive is attractive with a PE of 20.15. These comparisons highlight that Forge Auto's valuation is not justified given its performance metrics. Additionally, while Forge Auto has outperformed the Sensex year-to-date with a return of 85.83% compared to the Sensex's 7.10%, this does not mitigate its overvaluation status based on fundamental analysis.
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