Is Steel Exchange overvalued or undervalued?
As of July 1, 2025, Steel Exchange's valuation has improved to very attractive, indicating it is undervalued with a PE ratio of 46.63, a favorable EV to EBITDA ratio of 12.73, and a PEG ratio of 0.36, especially when compared to peers like JSW Steel and Tata Steel, despite recent underperformance against the Sensex.
As of 1 July 2025, the valuation grade for Steel Exchange has moved from attractive to very attractive. This indicates a strong positive sentiment towards the company's valuation. Based on the analysis, Steel Exchange appears to be undervalued, especially when considering its current PE ratio of 46.63, an EV to EBITDA ratio of 12.73, and a PEG ratio of 0.36, which suggests growth potential at a reasonable price.In comparison to its peers, Steel Exchange's PE ratio is significantly lower than that of JSW Steel at 66.59 and Tata Steel at 52.73, both of which are rated as fair or attractive. Additionally, the EV to EBITDA ratio of Steel Exchange is more favorable than that of JSW Steel, which stands at 14.47. Despite recent underperformance against the Sensex, particularly over the past year, the long-term performance of Steel Exchange shows a remarkable 274.19% increase over the last five years, reinforcing its potential as an undervalued asset in the iron and steel industry.
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