Is Magna Electrocas overvalued or undervalued?

As of 28 July 2025, the valuation grade for Magna Electrocas has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE Ratio of 22.05, an EV to EBITDA of 14.24, and a PEG Ratio of 0.42, indicating strong growth potential relative to its price.
In comparison to its peers, Bharat Forge has a significantly higher PE Ratio of 55.03, while CIE Automotive shows a more attractive valuation with a PE of 19.57. Magna Electrocas's robust return on equity (ROE) of 21.33% further supports its fair valuation. Notably, the company's stock has outperformed the Sensex over the past year, with a return of 156.33% compared to the Sensex's -0.54%, reinforcing the positive outlook on its valuation.