Is Sundaram Brake overvalued or undervalued?

As of 4 November 2025, Sundaram Brake's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently overvalued, with a PE ratio of 99.80, an EV to EBITDA of 33.17, and a Price to Book Value of 3.16. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Sundaram Brake's valuation stands out significantly. For example, Samvardhana Motherson has a PE ratio of 32.28 and an EV to EBITDA of 11.83, while Bosch, also categorized as expensive, has a PE of 50.31 and an EV to EBITDA of 45.44. The disparity in these ratios highlights that Sundaram Brake is not only overvalued relative to its direct competitors but also lacks the growth metrics to justify such a high valuation. Despite recent stock performance showing a 1.97% return over the past week, the broader context of a -40.73% year-to-date return suggests that the stock's current price may not be sustainable.