Is JSW Cement overvalued or undervalued?

As of 5 September 2025, the valuation grade for JSW Cement has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 200.94, an EV to EBITDA of 34.50, and a Price to Book Value of 7.90.
When compared to its peers, JSW Cement's valuation appears excessive; for instance, UltraTech Cement has a PE ratio of 53.59 and Grasim Industries stands at 44.86, both of which are substantially lower than JSW Cement's. This disparity highlights the overvaluation of JSW Cement within the cement industry. Additionally, while the stock has shown a slight return of 1.11% over the past week, it has underperformed compared to the Sensex, which returned 1.13% in the same period, further reinforcing the notion that the stock may not be a sound investment at its current price.