Is Precision Metal. overvalued or undervalued?

As of 24 October 2025, Precision Metal has moved from an attractive to a fair valuation grade. The company is currently considered overvalued based on its financial ratios and peer comparisons. The PE ratio stands at 38.38, while the EV to EBITDA ratio is also at 28.48, indicating a high valuation relative to earnings. Additionally, the Price to Book Value is notably low at 0.35, which typically suggests undervaluation, but in this context, it does not offset the high earnings multiples.
When compared to peers, Precision Metal's PE ratio is significantly higher than that of Jindal Steel at 24.44 and Tata Steel at 44.89, which indicates that investors are paying a premium for Precision Metal's earnings without a corresponding growth outlook, as reflected in its PEG ratio of 0.00. The company's recent stock performance has been poor, with a year-to-date return of -56.68%, contrasting sharply with the Sensex's gain of 9.09% in the same period, further supporting the conclusion that Precision Metal is overvalued.