Is Earthstahl &All. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Earthstahl & All. has moved from very expensive to expensive, indicating a slight improvement in perceived value. However, the company is still considered overvalued based on its current financial metrics. The price-to-earnings (PE) ratio stands at 31.21, while the price-to-book value is notably low at 0.83, and the EV to EBITDA ratio is at 12.40. These ratios suggest that while the company is generating some earnings, its valuation remains high compared to its book value.
In comparison to its peers, Earthstahl & All. has a higher PE ratio than companies like Jindal Steel, which has a PE of 24.68, and Tata Steel, with a PE of 44.71. Furthermore, the company's return on capital employed (ROCE) is only 2.51%, which is significantly lower than the industry average, reinforcing the notion of overvaluation. Despite a recent strong stock performance relative to the Sensex, with a 1-week return of 21.43% compared to the Sensex's 1.59%, the long-term outlook remains concerning, particularly with a year-to-date decline of 36.88% against the Sensex's 5.58% gain.