Is MRF overvalued or undervalued?

As of 7 November 2025, MRF's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 37.46, an EV to EBITDA of 16.86, and a Price to Book Value of 3.64. These figures suggest that MRF is trading at a premium compared to its peers.
In comparison, Balkrishna Industries is categorized as very expensive with a PE of 32.51, while Apollo Tyres is considered attractive with a PE of 31.23. This highlights MRF's relatively higher valuation within the industry. Notably, MRF has outperformed the Sensex over various periods, including a year-to-date return of 21.99% compared to the Sensex's 6.50%, reinforcing the narrative of its strong performance despite its current overvaluation status.