Is Jayaswal Neco overvalued or undervalued?

As of 24 October 2025, the valuation grade for Jayaswal Neco has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios reflect this assessment, with a PE ratio of 20.30, an EV to EBITDA of 8.17, and a Price to Book Value of 3.22. Compared to peers, Jayaswal Neco's valuation appears high, especially when contrasted with JSW Steel, which has a PE of 45.42, and Tata Steel at 44.89, both of which are considered fairly valued.
In light of these comparisons and the elevated valuation metrics, Jayaswal Neco is deemed overvalued. Despite its impressive stock performance, with a year-to-date return of 101.95% compared to the Sensex's 7.77%, the current pricing does not align with its financial ratios and peer valuations, suggesting a potential correction in the future.