Is MRF overvalued or undervalued?

Oct 14 2025 08:05 AM IST
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As of October 13, 2025, MRF is fairly valued with a PE ratio of 36.91 and an EV to EBITDA of 16.61, outperforming peers like Balkrishna Industries and Goodyear India, and achieving a year-to-date return of 20.21% compared to the Sensex's 5.36%.
As of 13 October 2025, the valuation grade for MRF has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE Ratio of 36.91, an EV to EBITDA of 16.61, and a ROCE of 13.16%.

In comparison to its peers, MRF's valuation is more favorable than Balkrishna Industries, which is classified as very expensive with a PE of 29.49, and Goodyear India, also very expensive with a PE of 51.14. MRF's recent stock performance has outpaced the Sensex, with a year-to-date return of 20.21% compared to the Sensex's 5.36%, reinforcing its fair valuation status.
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