Is Steel Exchange overvalued or undervalued?

As of 26 August 2025, the valuation grade for Steel Exchange has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 33.12, an EV to EBITDA of 11.34, and a PEG ratio of 0.46, which suggests that the stock is trading at a lower valuation compared to its growth potential.
When compared to peers, Steel Exchange's PE ratio of 33.12 is notably lower than JSW Steel's 50.26 and Tata Steel's 39.87, both of which are in a higher valuation category. Additionally, the EV to EBITDA ratio of 11.34 is competitive against Tata Steel's 10.61, reinforcing the attractiveness of Steel Exchange's valuation. Despite recent stock performance lagging behind the Sensex, particularly over the past year with a decline of 36.62% compared to a slight drop in the Sensex, the underlying valuation metrics suggest that Steel Exchange presents a compelling investment opportunity at its current price of 9.07.