Is Maiden Forgings overvalued or undervalued?

As of 7 July 2025, the valuation grade for Maiden Forgings has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. However, the company is still considered overvalued based on its current metrics. The PE ratio stands at 19.03, while the EV to EBITDA ratio is 9.11, and the ROE is at 8.53%. These figures suggest that the company is trading at a premium compared to its peers.
In comparison to its industry peers, Maiden Forgings' valuation appears less attractive. For instance, JSW Steel and Tata Steel, both rated as fair, have significantly higher PE ratios of 67.58 and 53.53, respectively, while Jindal Steel, rated as attractive, has a PE of 24.02. Despite a recent 1-month stock return of 18.68%, which outperformed the Sensex's 1.53%, the overall valuation still leans towards overvaluation given the current market conditions and peer comparisons.