Is Menon Bearings overvalued or undervalued?

As of 13 June 2025, the valuation grade for Menon Bearings has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a PE ratio of 27.77, an EV to EBITDA of 17.06, and a PEG ratio of 11.87, all suggesting that the stock is priced at a premium compared to its earnings and growth potential.
In comparison to its peers, Menon Bearings' PE ratio is lower than that of Samvardhana Motherson, which stands at 28.49, but significantly higher than Endurance Technologies at 40.82, indicating a mixed competitive landscape. Notably, while Menon Bearings has shown a strong return of 64.36% over the past three years, its one-year performance of -1.79% lags behind the Sensex's 5.61% return, reinforcing the notion that the stock may be overvalued relative to its recent performance and growth trajectory.