Is Forge Auto overvalued or undervalued?

As of 14 November 2025, the valuation grade for Forge Auto has moved from expensive to very expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE Ratio of 15.70, an EV to EBITDA of 10.33, and a Price to Book Value of 2.57, which indicate that the stock is priced higher relative to its earnings and book value compared to peers.
In comparison to its industry peers, Forge Auto's valuation metrics appear significantly higher than those of Bharat Forge, which has a PE of 61.68 and is rated fair, and CIE Automotive, rated attractive with a PE of 20.34. This suggests that Forge Auto may not justify its current price given the valuation of its competitors. Additionally, while the stock has performed well year-to-date with a return of 78.04% compared to the Sensex's 9.58%, the elevated valuation raises concerns about its sustainability moving forward.