Is Forge Auto overvalued or undervalued?

Nov 16 2025 08:11 AM IST
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As of November 14, 2025, Forge Auto is considered very expensive and overvalued with a PE ratio of 15.70, despite outperforming the Sensex with a 78.04% year-to-date return, particularly when compared to peers like Bharat Forge and CIE Automotive, which have lower PE ratios and more favorable valuations.
As of 14 November 2025, the valuation grade for Forge Auto has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 15.70, an EV to EBITDA of 10.33, and a ROE of 16.37%.

In comparison to its peers, Forge Auto's valuation appears starkly higher than Bharat Forge, which has a PE ratio of 61.68 and is rated fair, and CIE Automotive, rated attractive with a PE of 20.34. This suggests that Forge Auto's valuation does not align with its performance metrics relative to its competitors. Additionally, while Forge Auto has outperformed the Sensex with a year-to-date return of 78.04% compared to the Sensex's 9.58%, the current high valuation raises concerns about sustainability moving forward.
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