Is Motherson Wiring overvalued or undervalued?

As of 8 July 2025, Motherson Wiring'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 47.14, an EV to EBITDA of 28.67, and a ROE of 35.67%.
When compared to peers, Motherson Wiring's PE ratio is significantly higher than Samvardhana Motherson's attractive rating of 28.54, while Bosch, categorized as expensive, has a PE of 52. This suggests that Motherson Wiring is positioned in the middle of the valuation spectrum among its peers. Additionally, the company's recent stock performance has outpaced the Sensex over the past week and month, with returns of 8.48% and 6.76%, respectively, although it has underperformed over the past year.