Is Mazda overvalued or undervalued?

As of 30 June 2025, Mazda's valuation grade has moved from fair to attractive, indicating a positive shift in its market standing. The company is currently considered undervalued. Key ratios supporting this assessment include a PE ratio of 19.33, an EV to EBITDA of 13.18, and a ROCE of 23.68%.
In comparison to its peers, Mazda's valuation metrics stand out, particularly against companies like Rail Vikas, which has a PE ratio of 64.72, and Tube Investments at 88.63. This suggests that Mazda is trading at a significantly lower valuation relative to its peers while maintaining strong operational performance. Additionally, while Mazda has underperformed the Sensex in the short term, its long-term returns over 3, 5, and 10 years have outpaced the index, reinforcing the attractiveness of its current valuation.