Is MRF overvalued or undervalued?

Oct 09 2025 08:04 AM IST
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As of October 8, 2025, MRF is considered overvalued with a valuation grade of expensive, reflected in its high PE ratio of 36.63 compared to peers like Apollo Tyres and JK Tyre & Industries, and despite a strong year-to-date stock performance of 19.29% versus the Sensex's 4.65%.
As of 8 October 2025, MRF's valuation grade has moved from fair to expensive, indicating a shift in its market position. The company is currently considered overvalued. Key ratios highlight this assessment: the PE ratio stands at 36.63, the EV to EBIT ratio is 28.52, and the Price to Book Value is 3.56.

In comparison with peers, MRF's PE ratio is significantly higher than that of Apollo Tyres, which has a PE of 29.52, and JK Tyre & Industries, with a PE of 22.54, both of which are categorized as attractive. Furthermore, MRF's recent stock performance has outpaced the Sensex, with a year-to-date return of 19.29% compared to the Sensex's 4.65%, reinforcing the notion of its current overvaluation.
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