Is Mazda overvalued or undervalued?

As of 28 July 2025, Mazda's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 23.78, an EV to EBITDA of 16.96, and a Price to Book Value of 2.72, which suggest that the stock is trading at a premium compared to its earnings and asset value.
In comparison to its peers, Mazda's PE ratio is significantly lower than that of Rail Vikas, which stands at 57.69, but higher than Ircon International at 22.77, highlighting a mixed competitive landscape. Additionally, while Mazda's PEG ratio is at 0.00, indicating no growth expectations priced in, other peers like Tube Investments and AIA Engineering are classified as very expensive, further supporting the notion that Mazda may be overvalued in its current market context. Despite a recent 1-month stock return of 21.68%, outperforming the Sensex's decline of 3.77%, the overall valuation suggests caution for potential investors.