Is MRF overvalued or undervalued?

As of 12 September 2025, MRF's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on key financial metrics. The PE ratio stands at 34.63, while the EV to EBITDA ratio is 15.58, and the Price to Book Value is 3.37. These ratios suggest that MRF is priced in line with its earnings and asset values compared to its peers.
In comparison to its industry peers, MRF's PE ratio is higher than that of Apollo Tyres, which has a PE of 28.86, and CEAT, with a PE of 28.92, both of which are rated as attractive. Additionally, MRF's EV to EBITDA ratio of 15.58 is more favorable than Balkrishna Industries, which is considered very expensive at 20.70. Despite MRF's recent stock performance showing a 12.77% year-to-date return compared to the Sensex's 4.82%, the overall valuation suggests that MRF is fairly valued within its market context.