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 towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 99.80, an EV to EBITDA of 33.17, and a Price to Book Value of 3.16. In comparison to its peers, Samvardhana Motherson holds an attractive valuation with a PE of 32.28, while Bosch is also classified as expensive with a PE of 50.31.
The significant disparity in valuation metrics suggests that Sundaram Brake is not only overvalued relative to its direct competitors but also exhibits weak returns, with a ROE of just 3.17% and a ROCE of 4.76%. Additionally, despite a recent positive stock performance of 1.97% over the past week compared to a -1.38% return for the Sensex, the year-to-date decline of -40.73% underscores the challenges the company faces in sustaining its valuation.