Is Goodyear India overvalued or undervalued?

As of 12 February 2025, Goodyear India has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, with a PE ratio of 39.91, a Price to Book Value of 3.65, and an EV to EBITDA of 17.46. In comparison to its peers, MRF has a PE of 31.76 and an EV to EBITDA of 14.53, while Balkrishna Industries shows a PE of 29.20 and an EV to EBITDA of 20.27, indicating that Goodyear India is trading at a significant premium relative to these competitors.
Despite a recent uptick in stock price, with a 1-week return of 3.17% compared to the Sensex's 1.43%, the long-term performance shows a decline of 17.54% over the past year versus the Sensex's 7.62% gain. This trend further supports the conclusion that Goodyear India is overvalued in the current market environment.