Is APL Apollo Tubes overvalued or undervalued?

As of 8 May 2025, APL Apollo Tubes' valuation grade has moved from expensive to fair, indicating a more favorable assessment of its stock. The company is currently fairly valued, with a PE ratio of 70.53, an EV to EBITDA of 44.58, and a ROE of 17.99%. In comparison, peers such as JSW Steel and Tata Steel have PE ratios of 64.98 and 51.92, respectively, suggesting that APL Apollo Tubes is trading at a premium relative to these competitors.
The company's strong performance is also reflected in its recent stock returns, outperforming the Sensex across various time frames, including a year-to-date return of 19.89% compared to the Sensex's 5.63%. This performance, coupled with a solid ROCE of 23.37%, reinforces the view that APL Apollo Tubes is fairly valued within its industry context.