Is MRF overvalued or undervalued?

As of 7 November 2025, MRF's valuation grade has moved from fair to expensive, indicating a shift in its perceived value. The company is currently overvalued based on its key financial ratios, which include 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 to its industry competitors, MRF's PE ratio is notably higher than that of Balkrishna Industries at 32.51 and Apollo Tyres at 31.23, both of which are considered attractive. Additionally, MRF's EV to EBITDA ratio of 16.86 is also elevated when compared to CEAT's 11.36. While MRF has shown strong stock performance, with a year-to-date return of 21.99% compared to the Sensex's 6.50%, the current valuation metrics indicate that the stock is overvalued in the context of its peers.