Is Mazda overvalued or undervalued?

As of 6 June 2025, Mazda's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued based on its key financial ratios, including a PE ratio of 19.42, an EV to EBITDA of 13.25, and a robust ROCE of 23.68%. In comparison to its peers, Mazda's valuation stands out, especially against Rail Vikas and Tube Investments, which are deemed very expensive with PE ratios of 69.76 and 87.5, respectively.
Despite a recent decline in stock performance, with a year-to-date return of -19.65% compared to the Sensex's 5.61%, Mazda's strong fundamentals suggest it is positioned for recovery. The company's PEG ratio of 0.00 further emphasizes its attractiveness, indicating potential for growth without the corresponding high valuation typically seen in its industry peers. Overall, Mazda's current valuation reflects an opportunity for investors looking for value in the industrial manufacturing sector.