Is Jayaswal Neco overvalued or undervalued?

As of 24 October 2025, the valuation grade for Jayaswal Neco has moved from fair to expensive, indicating a shift in its perceived value. The company is currently considered overvalued based on its financial ratios, with a Price to Earnings (PE) ratio of 20.30, a Price to Book Value ratio of 3.22, and an EV to EBITDA ratio of 8.17. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Jayaswal Neco's PE ratio is significantly lower than that of JSW Steel and Tata Steel, which stand at 45.42 and 44.89, respectively, indicating that while it may appear less expensive on a PE basis, the overall valuation remains high given its current financial metrics. Additionally, the company has shown impressive stock performance, with a year-to-date return of 101.95%, significantly outpacing the Sensex's 7.77% return, which may have contributed to its elevated valuation.