Is Mazda overvalued or undervalued?

As of 23 June 2025, Mazda's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 19.49, an EV to EBITDA of 13.32, and a ROCE of 23.68%, which reflect a solid operational performance but suggest limited upside potential in the current market environment.
In comparison to its peers, Mazda's valuation appears more reasonable when juxtaposed with companies like Ircon International, which has a PE ratio of 25.39, and Craftsman Auto at 59.76. Notably, Mazda's PEG ratio stands at 0.00, indicating no growth expectations priced into the stock, which contrasts sharply with the high valuations of its peers. Despite a recent stock return of 0.81% over the past week, Mazda has underperformed the Sensex over the year, which may further influence investor sentiment regarding its valuation.