Is MRF overvalued or undervalued?

As of 7 November 2025, MRF's valuation grade has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios highlight this position, with a PE ratio of 37.46, an EV to EBITDA of 16.86, and a Price to Book Value of 3.64. Compared to its peers, MRF's valuation stands out, particularly against Balkrishna Industries, which has a PE of 32.51, and Apollo Tyres, which is valued at a PE of 31.23, both suggesting that MRF is priced at a premium relative to these competitors.
In light of these metrics, MRF appears overvalued in the current market context. The company's recent stock performance has outpaced the Sensex, with a year-to-date return of 21.99% compared to the Sensex's 6.50%, but this strong performance does not justify its elevated valuation levels.