Is Mazda overvalued or undervalued?

Jun 10 2025 08:02 AM IST
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As of June 9, 2025, Mazda is fairly valued with a PE ratio of 19.69 and an EV to EBITDA of 13.49, despite a year-to-date stock decline of 17.93%, while demonstrating strong operational efficiency with a ROCE of 23.68% and ROE of 11.44%.
As of 9 June 2025, the valuation grade for Mazda has moved from attractive to fair. The company is currently fairly valued, with a PE ratio of 19.69, an EV to EBITDA ratio of 13.49, and a dividend yield of 1.31%. In comparison to peers, Ircon International has a PE ratio of 28.22 and an EV to EBITDA of 23.24, while Craftsman Auto shows a PE of 63.02 and an EV to EBITDA of 18.59, indicating that Mazda's valuation is more reasonable within its competitive landscape.

Despite recent stock performance showing a decline of 17.93% year-to-date compared to a 5.51% rise in the Sensex, Mazda's strong ROCE of 23.68% and ROE of 11.44% suggest solid operational efficiency. Given these metrics and the current market context, Mazda appears to be fairly valued at this time.
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