Is New Swan overvalued or undervalued?

As of 18 August 2025, the valuation grade for New Swan has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios reflect this assessment, with a PE ratio of 11.72, an EV to EBITDA of 7.20, and a PEG ratio of 0.54. These figures suggest that while the company has a reasonable earnings multiple, it is not compelling enough to justify its current price given the overall market context.
In comparison to its peers, New Swan's valuation appears high, especially when contrasted with Samvardhan Motherson, which has a PE ratio of 29.09 and is considered attractive. Other peers like Bosch and Uno Minda are also classified as expensive, with significantly higher PE ratios of 52.28 and 68.22, respectively. This peer comparison further reinforces the notion that New Swan is overvalued in its sector. Despite a year-to-date return of 8.43% compared to the Sensex's 4.01%, the overall valuation metrics suggest that investors may want to exercise caution before entering or expanding positions in New Swan.