Is Metal Coatings overvalued or undervalued?

As of 9 July 2025, the valuation grade for Metal Coatings has moved from very expensive to expensive, indicating a slight improvement in perceived value. The company is currently considered overvalued based on its financial ratios and peer comparisons. The PE ratio stands at 22.15, while the EV to EBITDA ratio is 7.93, both of which are higher than many of its peers. For instance, Tata Steel, which is rated attractive, has a PE ratio of 52.41 and an EV to EBITDA of 11.12, while JSW Steel, rated fair, has a PE ratio of 67.32.
In comparison to its peers, Metal Coatings shows a relatively low ROE of 5.76% and an EV to Sales ratio of just 0.26, which suggests that it may not be generating sufficient returns relative to its market valuation. Given these metrics, along with a recent underperformance against the Sensex, where the stock has declined 18.50% year-to-date compared to a 6.91% increase in the index, it reinforces the view that Metal Coatings is overvalued in the current market environment.