Is Motherson Wiring overvalued or undervalued?

As of 15 October 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 51.21, an EV to EBITDA of 30.68, and a ROE of 35.33%.
In comparison to its peers, Motherson Wiring's PE ratio is higher than that of Samvardhana Motherson, which has a PE of 32.4 and is rated attractive, while it is slightly lower than Bosch, which is considered expensive at a PE of 50.9. The company's recent performance shows a year-to-date return of 20.52%, significantly outperforming the Sensex's return of 5.72% during the same period, reinforcing the notion that while the company is fairly valued, it has been able to deliver strong returns relative to the broader market.