Is Maruti Suzuki overvalued or undervalued?

As of 1 October 2025, Maruti Suzuki'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 key financial metrics, with a PE ratio of 34.58, an EV to EBITDA ratio of 25.27, and a PEG ratio of 0.00, suggesting that the stock may be priced lower relative to its growth potential.
When compared to peers, Maruti Suzuki's valuation stands out; for instance, Mahindra & Mahindra has a PE ratio of 31.43, while Tata Motors is significantly lower at 12.23. Additionally, Hyundai Motor, which is rated fair, has a higher PE of 37.53. Despite recent stock performance showing a slight decline of 1.60% over the past week, Maruti Suzuki has outperformed the Sensex with a year-to-date return of 47.15% compared to the Sensex's 3.64%. This reinforces the notion that Maruti Suzuki is positioned well in the market, further supporting the conclusion of it being undervalued.