Is Gabriel India overvalued or undervalued?

As of 14 November 2025, Gabriel India has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 65.67, an EV to EBIT of 51.55, and an EV to EBITDA of 40.06. These figures significantly exceed those of its peers, such as Samvardhana Motherson with a PE of 34.21 and Bosch at 47.86, indicating a premium valuation that may not be justified by its earnings potential.
In comparison to its peers, Gabriel India's PEG ratio of 5.28 also suggests that the company's growth prospects are not sufficient to warrant its current price. Despite a strong return on capital employed (ROCE) of 25.81% and a return on equity (ROE) of 20.01%, the elevated valuation metrics imply that the stock may be priced too high relative to its financial performance. Recent stock performance shows a decline of 5.77% over the past week, contrasting with a 1.62% gain in the Sensex, further supporting the view that Gabriel India is overvalued in the current market environment.