Is Motherson Wiring overvalued or undervalued?

As of 20 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, with a PE ratio of 51.34, an EV to EBITDA ratio of 30.76, and a ROE of 35.33%. In comparison to peers, Bosch is considered expensive with a PE of 52.1, while Samvardhana Motherson is attractive with a PE of 32.75, highlighting Motherson Wiring's relatively high valuation within its industry.
Despite the fair valuation, Motherson Wiring has shown strong performance with a year-to-date return of 20.83%, significantly outperforming the Sensex's 7.97%. However, its high valuation ratios, particularly the EV to Sales ratio of 3.20, suggest that the market has high expectations for future growth, which may not be sustainable in the long term. Overall, while the company is fairly valued, the elevated ratios and peer comparisons indicate caution for potential investors.