Is New Swan overvalued or undervalued?

As of 30 October 2025, New Swan's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 10.56, an EV to EBITDA of 7.30, and a PEG ratio of 0.49, which suggests that while the company has a relatively low PE, its growth expectations may not justify the current price.
In comparison to peers, New Swan's PE ratio is significantly lower than that of Samvardhana Motherson, which stands at 33.03, indicating that New Swan is trading at a discount relative to this competitor. However, it is also important to note that other peers like Uno Minda are classified as expensive with a PE of 68.64. The recent stock performance shows that New Swan has outperformed the Sensex over the past week, with a return of 13.26% compared to a slight decline in the Sensex. Overall, the combination of its financial ratios and peer comparisons suggests that New Swan is overvalued in the current market environment.