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 deemed overvalued, with a PE ratio of 200.94, a Price to Book Value of 7.90, and an EV to EBITDA of 34.50. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, JSW Cement's valuation stands out as particularly high. For instance, UltraTech Cement has a PE ratio of 53.59 and an EV to EBITDA of 28.01, while Grasim Industries offers a more attractive PE of 44.86. This stark contrast reinforces the notion that JSW Cement is overvalued in the current market context. Additionally, despite the recent stock performance showing a slight gain of 1.11% over the past week, it lags behind the Sensex's return of 1.13%, further highlighting the stock's relative weakness.