Is Z F Steering overvalued or undervalued?

As of 7 November 2025, Z F Steering has moved from a fair to a very attractive valuation grade. The company appears to be undervalued, particularly when considering its key ratios: a PE ratio of 73.74, an EV to EBITDA of 25.28, and an EV to Capital Employed of 0.26. These figures suggest that despite the high PE ratio, the overall valuation metrics indicate a potential upside.
In comparison to its peers, Z F Steering's valuation stands out. For instance, Bosch has a PE ratio of 49, while Samvardhana Motherson shows a PE of 32.06, both of which are significantly lower than Z F Steering's. Additionally, the PEG ratio of Z F Steering is notably at 0.00, indicating a strong growth potential relative to its price. Despite recent stock performance lagging behind the Sensex, particularly with a year-to-date return of -41.45% compared to the Sensex's 6.50%, the long-term growth potential remains promising, suggesting that the current valuation may not fully reflect the company's future prospects.