Is Rathi Steel overvalued or undervalued?

As of 31 October 2025, Rathi Steel's valuation grade has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently considered undervalued, with a PE ratio of 27.98, an EV to EBITDA ratio of 12.31, and a PEG ratio of 0.36, suggesting that the stock is trading at a reasonable price relative to its growth potential.
In comparison to its peers, Rathi Steel's valuation stands out, particularly against JSW Steel, which is classified as expensive with a PE ratio of 48.13, and Tata Steel, which is deemed fair with a PE of 47.06. This positions Rathi Steel favorably within the industry, especially considering its attractive valuation metrics. Additionally, while the stock has underperformed on a year-to-date basis with a return of -33.62%, it has shown resilience with a notable 10-year return of 682.29%, significantly outperforming the Sensex during that period.