Is Sunflag Iron overvalued or undervalued?

As of 9 June 2025, the valuation grade for Sunflag Iron has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 32.30, an EV to EBITDA of 14.64, and a PEG ratio of 2.50, which suggest that despite its high earnings multiple, the growth potential may not justify the current price.
In comparison to its peers, Sunflag Iron's PE ratio is significantly higher than that of Jindal Steel, which stands at 24.56 and is rated attractive, and Tata Steel, with a PE of 51.84, rated as attractive as well. This highlights that Sunflag Iron is trading at a premium relative to its more favorably rated competitors. Additionally, while Sunflag Iron has outperformed the Sensex with a 1-year return of 40.35% compared to the Sensex's 7.50%, the current valuation metrics suggest that investors should exercise caution.