Is Steel Exchange overvalued or undervalued?

As of 30 June 2025, the valuation grade for Steel Exchange has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently considered overvalued based on its high PE ratio of 48.01 and a Price to Book Value of 1.88, which are significantly above industry averages. Additionally, its EV to EBITDA ratio stands at 13.02, suggesting that the company's valuation may not be justified by its earnings potential.
In comparison to peers, Steel Exchange's PE ratio is notably higher than that of Tata Steel, which has a PE of 52.66, and Jindal Steel, which has a PE of 23.71. The PEG ratio of Steel Exchange at 0.37 also indicates potential overvaluation, especially when compared to Tata Steel's PEG of 1.36. Recent stock performance shows that while Steel Exchange has outperformed the Sensex in the short term, its longer-term returns have lagged significantly, further supporting the conclusion that it is currently overvalued.