Is Maruti Suzuki overvalued or undervalued?

As of 22 April 2025, Maruti Suzuki's valuation grade has moved from fair to attractive, indicating a positive shift in its market standing. The company is currently assessed as undervalued, supported by a PE ratio of 26.98, an EV to EBITDA of 19.10, and a ROCE of 16.49%. In comparison to its peers, Maruti Suzuki's valuation metrics are competitive, with similar companies showing a PE ratio of around 27 and an EV to EBITDA ratio of approximately 19, suggesting that Maruti is well-positioned within the industry.
The company's recent performance also reflects its potential, with a year-to-date return of 15.81%, significantly outperforming the Sensex's 5.62% during the same period. This trend reinforces the attractiveness of Maruti Suzuki as an investment opportunity, especially given its solid financial ratios and favorable peer comparisons.