Is Earthstahl &All. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Earthstahl & All. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued, with a PE ratio of 53.12, an EV to EBIT of 33.14, and a ROCE of only 2.51%. These metrics suggest that the stock is trading at a premium compared to its earnings and capital efficiency.
In comparison to its peers, Earthstahl & All.'s PE ratio is higher than JSW Steel's 55.74 and Tata Steel's 44.31, both of which are in less expensive categories. Additionally, the company's EV to EBITDA ratio of 11.63 is notably higher than Jindal Steel's 11.94 and significantly above SAIL's attractive level of 7.96. The recent stock performance has also been poor, with a year-to-date return of -43.07%, contrasting sharply with the Sensex's positive return of 7.44% during the same period, further reinforcing the overvaluation narrative.