Is Sunflag Iron overvalued or undervalued?

As of 5 June 2025, the valuation grade for Sunflag Iron has moved from expensive to very expensive, indicating a significant shift in its market perception. The company appears to be overvalued based on its current metrics, with a PE ratio of 33.21, an EV to EBITDA of 15.02, and a PEG ratio of 2.57. These ratios suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Sunflag Iron's valuation stands out as notably high; for instance, JSW Steel has a PE ratio of 64.98 and an EV to EBITDA of 14.20, while Tata Steel is rated attractive with a PE of 51.92 and an EV to EBITDA of 11.04. This peer comparison further reinforces the notion that Sunflag Iron is overvalued in its sector. Additionally, the company's stock has significantly outperformed the Sensex over various time frames, with a one-year return of 43.25% compared to the Sensex's 7.62%, which may have contributed to the inflated valuation.