Is Steel Exchange overvalued or undervalued?

Jul 10 2025 08:00 AM IST
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As of July 9, 2025, Steel Exchange is considered overvalued with a valuation grade of "attractive," reflected by a high PE ratio of 47.96 compared to peers, and a disappointing 1-year return of -27.21%.
As of 9 July 2025, the valuation grade for Steel Exchange has moved from very attractive to attractive. The company is currently considered overvalued based on its financial ratios and peer comparisons. Key ratios include a PE ratio of 47.96, an EV to EBITDA of 13.01, and a PEG ratio of 0.37, which suggest that the stock is trading at a premium compared to its earnings growth potential.

In comparison to its peers, Steel Exchange's PE ratio is significantly higher than that of Tata Steel, which has a PE of 52.41, and Jindal Steel, which stands at 23.85. While some peers like JSW Steel are considered fair with a PE of 67.32, the overall valuation landscape indicates that Steel Exchange is not positioned favorably. Additionally, the company's recent stock performance has been underwhelming, with a 1-year return of -27.21% compared to a 3.96% return for the Sensex, reinforcing the notion that the stock may be overvalued in the current market environment.
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