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 appears to be overvalued at its current price of 123.60, especially when considering key ratios such as a PE ratio of 27.77, an EV to EBITDA of 17.06, and a PEG ratio of 11.87.
In comparison to its peers, Menon Bearings' valuation stands out as expensive, particularly against Samvardh. Mothe. which is rated attractive with a PE of 28.49, and Endurance Tech, which is fairly valued with a PE of 40.82. The recent stock performance shows that while Menon Bearings has outperformed the Sensex over the last three years, its one-year return of -1.79% contrasts with the Sensex's 5.61%, reinforcing the notion that the stock may be overvalued in the current market environment.