Is Precision Metal. overvalued or undervalued?

Sep 10 2025 08:05 AM IST
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As of September 9, 2025, Precision Metal is overvalued with a PE ratio of 37.15 and a year-to-date decline of 47.04%, significantly underperforming compared to its peers and the Sensex.
As of 9 September 2025, Precision Metal has moved from a fair valuation to an expensive rating. The company is currently overvalued, with a PE ratio of 37.15, an EV to EBIT of 25.03, and an EV to Sales ratio of 0.20. In comparison to its peers, JSW Steel has a PE ratio of 52.99 and Tata Steel boasts a more attractive PE of 43.51, indicating that Precision Metal's valuation is significantly higher relative to its industry counterparts.

The company's recent performance has been lackluster, with a year-to-date decline of 47.04%, contrasting sharply with the Sensex's positive return of 5.18% during the same period. Given the high valuation metrics and the poor stock performance relative to the market, Precision Metal appears to be overvalued at its current price of 22.80.
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