Is Titan International, Inc. overvalued or undervalued?

As of 30 October 2024, Titan International, Inc. has moved from a valuation grade of very expensive to risky, indicating a significant shift in its perceived value. The company appears to be undervalued, particularly when considering its Price to Book Value of 0.97 and an EV to Sales ratio of 0.51, which suggest that the market may not be fully recognizing its asset value and revenue potential. However, the company is currently loss-making, reflected in its NA P/E ratio and a negative ROE of -2.70%.
In comparison to peers, Titan's valuation metrics stand out, especially against PHINIA, Inc., which has a P/E of 18.52, and American Axle & Manufacturing Holdings, Inc., with a P/E of 9.62. Titan's EV to EBITDA ratio of 11.14 further highlights its relative valuation position within the industry. While the company has shown strong returns over the past year, outperforming the S&P 500 with a 24.27% return compared to the index's 10.26%, the overall financial health reflected in its ratios suggests that there is still caution warranted in its valuation assessment.