Is S.A.L Steel overvalued or undervalued?

As of 9 July 2025, S.A.L Steel's valuation grade has moved from fair to attractive, indicating a shift in its perceived value. The company is currently considered undervalued, particularly given its low PE ratio of -65.80 and an EV to EBITDA ratio of 11.49. Additionally, the price to book value stands at 3.30, which, while higher than some peers, still reflects a favorable valuation context.
In comparison to its peers, S.A.L Steel's valuation metrics contrast sharply with JSW Steel, which has a PE ratio of 67.32 and an EV to EBITDA of 14.59, suggesting that S.A.L Steel offers a more attractive entry point for investors. Tata Steel, another peer, shows an attractive PE of 52.41 and an EV to EBITDA of 11.12, further highlighting S.A.L Steel's relative undervaluation. Notably, S.A.L Steel has outperformed the Sensex over the long term, with a remarkable 713.89% return over the past decade, reinforcing its potential as a compelling investment opportunity.