Is S.A.L Steel overvalued or undervalued?

As of 7 July 2025, S.A.L Steel's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time. Key ratios include a PE ratio of -67.64, an EV to EBITDA of 11.67, and a ROCE of 7.93%.
In comparison to its peers, JSW Steel has a PE ratio of 67.58 and an EV to EBITDA of 14.63, while Tata Steel shows a PE of 53.53 and an EV to EBITDA of 11.28. These comparisons suggest that S.A.L Steel is underperforming relative to its competitors in terms of profitability metrics. Notably, the stock has underperformed the Sensex year-to-date, with a return of -23.01% compared to the Sensex's 6.79%, reinforcing the notion of its current fair valuation.