Is Goodyear India overvalued or undervalued?

As of 18 July 2025, Goodyear India's valuation grade has moved from very expensive to expensive, indicating a shift in market perception. The company appears to be overvalued based on its current metrics, with a PE ratio of 42.37, a Price to Book Value of 3.87, and an EV to EBITDA of 18.62. Compared to peers, MRF has a lower PE ratio of 33.49 and an EV to EBITDA of 15.32, while Apollo Tyres stands out with a more attractive valuation at a PE of 23.27 and an EV to EBITDA of 9.07.
The high valuation ratios of Goodyear India suggest that the stock is trading at a premium compared to its peers, which reinforces the conclusion of overvaluation. Additionally, the company's recent stock performance has lagged behind the Sensex, particularly over the past year, where it has returned -15.96% compared to the Sensex's 0.51%. This underperformance further supports the assessment that Goodyear India is overvalued in the current market environment.