Is Popular Vehicles overvalued or undervalued?

As of 27 June 2025, the valuation grade for Popular Vehicles has moved from attractive to very attractive, indicating a significant shift in its perceived value. The company is currently considered undervalued, particularly highlighted by its PE ratio of -87.84, which is a notable outlier compared to peers. Additionally, the EV to EBITDA ratio stands at 11.67, while the EV to Sales ratio is exceptionally low at 0.33, suggesting that the market may not be fully recognizing the company's potential.
In comparison to its peers, Popular Vehicles lags behind M & M, which has a PE ratio of 30.83 and an EV to EBITDA of 15.76, and Maruti Suzuki, with a PE of 27.45 and an EV to EBITDA of 19.44. Despite the recent stock performance showing a decline of 47.36% over the past year compared to a 6.08% increase in the Sensex, the current valuation metrics suggest that Popular Vehicles may present a compelling investment opportunity given its very attractive rating.