Is Scan Steels overvalued or undervalued?

As of 19 May 2025, the valuation grade for Scan Steels has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 10.03, an EV to EBITDA of 5.93, and a Price to Book Value of 0.51. These ratios suggest that Scan Steels is trading at a significant discount compared to its peers.
In comparison, JSW Steel has a PE ratio of 64.98 and an EV to EBITDA of 14.20, while Tata Steel shows a PE of 51.92 and an EV to EBITDA of 11.04, both of which highlight the relative undervaluation of Scan Steels in the ferrous metals industry. Despite recent underperformance against the Sensex, particularly over the past year with a return of -47.55% compared to the Sensex's 7.59%, the fundamental ratios suggest that Scan Steels presents a buying opportunity for investors looking for value in the sector.