Is Scan Steels overvalued or undervalued?

As of 19 November 2025, Scan Steels has moved from a very attractive to an attractive valuation grade. The company appears to be undervalued, with a PE ratio of 11.27, a Price to Book Value of 0.48, and an EV to EBITDA of 7.00. These ratios suggest that the stock is trading at a significant discount compared to its peers, particularly when considering JSW Steel, which has a PE ratio of 46.65, and Tata Steel, with a PE ratio of 29.03.
In comparison to its peers, Scan Steels' valuation metrics indicate a strong relative position, especially with an EV to Sales ratio of 0.39, which is considerably lower than many competitors. The company has also shown a return on capital employed (ROCE) of 5.29% and a return on equity (ROE) of 4.29%, which, while modest, reflect potential for improvement. Despite recent underperformance against the Sensex, with a year-to-date return of -23.53% compared to the Sensex's 9.02%, the current valuation suggests that Scan Steels may present a buying opportunity.