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 is currently considered undervalued, especially given its low Price to Book Value of 0.16 and a PEG Ratio of 0.00, indicating that the stock is trading at a significant discount relative to its earnings growth potential. Additionally, the EV to EBITDA ratio stands at 25.28, which, while high, is more favorable compared to peers like Bosch with an EV to EBITDA of 44.24 and Motherson Wiring at 30.66.
In comparison to its peers, Z F Steering's PE Ratio of 73.74 is higher than that of Samvardhana Motherson at 32.06, but it is important to note that Z F Steering's valuation metrics suggest a more attractive investment opportunity given its growth potential. Despite recent stock performance showing a decline, with a year-to-date return of -41.45% compared to the Sensex's 6.50%, the underlying valuation metrics indicate that Z F Steering is positioned for potential recovery and growth in the long term.