Is Maruti Suzuki overvalued or undervalued?

As of 31 October 2025, Maruti Suzuki's valuation grade has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE Ratio of 35.03, an EV to EBITDA of 25.60, and a ROE of 15.07%. In comparison to its peers, Mahindra & Mahindra is rated attractive with a PE of 31.58, while Hyundai Motor is also rated fair with a PE of 34.66. Notably, Tata Motors is rated very attractive with a significantly lower PE of 6.98, indicating a stark contrast in valuation within the industry. Despite a recent decline in stock price, Maruti Suzuki has outperformed the Sensex over the past year, with a return of 46.13% compared to the Sensex's 5.73%.