Is Hyundai Motor I overvalued or undervalued?

As of 16 June 2025, Hyundai Motor I's valuation grade has moved from fair to attractive, indicating a positive shift in its market perception. The company appears to be undervalued based on its financial metrics, with a PE ratio of 28.67, an EV to EBIT of 22.51, and an impressive ROCE of 78.71%. In comparison to its peers, Maruti Suzuki has a PE ratio of 27.19 and an EV to EBITDA of 19.25, while M & M shows a PE of 29.05 and an EV to EBITDA of 15.01, suggesting that Hyundai is competitively positioned within the industry.
The stock has demonstrated resilience, outperforming the Sensex with a year-to-date return of 7.43% compared to the Sensex's 4.68%. Given these factors, Hyundai Motor I's strong financial ratios and favorable peer comparison support the conclusion that it is currently undervalued in the market.