Is Sunflag Iron overvalued or undervalued?

As of 20 June 2025, the valuation grade for Sunflag Iron has moved from fair to expensive. The company is currently considered overvalued based on its financial ratios and peer comparisons. Notably, its PE ratio stands at 31.58, while the EV to EBITDA ratio is 14.34, and the PEG ratio is 2.45, indicating a premium valuation relative to its earnings growth prospects.
In comparison to its peers, Sunflag Iron's valuation appears less attractive. For instance, JSW Steel has a PE ratio of 65.12 and an EV to EBITDA of 14.22, while Tata Steel, which is rated attractive, has a PE of 50.07 and an EV to EBITDA of 10.76. Additionally, Sunflag Iron's return over the past year has significantly outperformed the Sensex, with a return of 32.56% compared to the Sensex's 6.36%, which may reflect investor sentiment but does not justify its current valuation level.