Is Steel Exchange overvalued or undervalued?

As of 2 July 2025, the valuation grade for Steel Exchange has moved from very attractive to attractive. The company is currently considered overvalued, with a PE ratio of 49.09, an EV to EBIT of 16.38, and an EV to EBITDA of 13.25. In comparison to its peers, JSW Steel and Tata Steel are both rated as fair with PE ratios of 68.63 and 54.69, respectively, while Jindal Steel, which is also attractive, has a significantly lower PE ratio of 24.52.
Despite the recent stock performance showing a 21.40% return over the past week compared to a mere 0.79% for the Sensex, the long-term outlook remains concerning, with a one-year return of -28.46% versus the Sensex's 5.00%. This indicates that while there may be short-term gains, the overall valuation suggests that Steel Exchange is not a favorable investment at its current price level.