Is JBM Auto overvalued or undervalued?

As of 31 October 2025, JBM Auto's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 75.54, an EV to EBITDA of 43.44, and a Price to Book Value of 1.16. Compared to its peers, JBM Auto's valuation metrics are significantly higher, particularly when contrasted with Samvardhana Motherson, which has a PE of 32.55 and an EV to EBITDA of 11.93, and Bosch, which stands at a PE of 49.53 and an EV to EBITDA of 44.73.
While JBM Auto's recent stock performance has been underwhelming, with a year-to-date return of -13.34% compared to the Sensex's 7.42%, its long-term trajectory remains impressive, showing a 3-year return of 226.51%. This suggests that while the current valuation appears fair, the company's potential for growth should not be overlooked, especially in light of its historical performance relative to the broader market.