Is Rathi Steel overvalued or undervalued?

As of 4 November 2025, Rathi Steel's valuation grade has moved from attractive to fair, indicating a shift in its market perception. The company is currently fairly valued based on its metrics. Key ratios include a PE Ratio of 29.03, an EV to EBITDA of 12.71, and a PEG Ratio of 0.37, which suggests that while the company is not undervalued, it is also not excessively priced compared to its earnings growth potential.
In comparison to its peers, Rathi Steel's PE Ratio is significantly lower than that of JSW Steel, which stands at 47.14, indicating that Rathi Steel is more reasonably priced relative to its earnings. Tata Steel, also rated as fair, has a PE of 46.11, further supporting the notion that Rathi Steel is positioned well within its competitive landscape. Despite recent stock performance showing a 13.37% return over the past week, the year-to-date return of -31.15% highlights the challenges the company faces, although it has outperformed the Sensex in the short term.