Is Precision Metal. overvalued or undervalued?

As of 12 September 2025, the valuation grade for Precision Metal has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE Ratio of 35.28, an EV to EBIT of 23.16, and a Price to Book Value of 0.41, which indicates that while the stock is not cheap, it is not excessively priced either.
In comparison to its peers, Precision Metal's PE Ratio is notably higher than that of Jindal Steel at 25.18 and lower than Tata Steel, which stands at 43.66. Additionally, the EV to EBITDA ratio of 23.16 aligns closely with the industry average, suggesting that the company is performing on par with its competitors. Notably, Precision Metal has underperformed the Sensex over the past year, with a return of -64.43% compared to the Sensex's -1.08%, reinforcing the notion that the stock may be undervalued relative to its recent performance.