Is Jindal Steel overvalued or undervalued?

As of 29 August 2025, Jindal Steel's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 23.05, an EV to EBITDA ratio of 11.31, and a Price to Book Value of 2.05. In comparison to its peers, JSW Steel has a significantly higher PE ratio of 49.05, while Tata Steel, also attractive, has a lower EV to EBITDA ratio of 10.58, suggesting that Jindal Steel offers a more favorable valuation among its competitors.
Despite a recent decline in stock price, with a 1-week return of -4.91% compared to the Sensex's -1.84%, Jindal Steel has shown impressive long-term performance, with a 5-year return of 338.38% against the Sensex's 102.22%. This strong performance, combined with its attractive valuation metrics, reinforces the conclusion that Jindal Steel is currently undervalued in the market.