Is Tata Steel overvalued or undervalued?
As of June 20, 2025, Tata Steel is considered undervalued with an attractive valuation grade, a PE Ratio of 50.07, an EV to EBITDA of 10.76, and a long-term return of 373.65% over five years, despite a recent decline in stock performance compared to the Sensex.
As of 20 June 2025, Tata Steel's valuation grade has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently considered undervalued. Key ratios include a PE Ratio of 50.07, an EV to EBITDA of 10.76, and a Dividend Yield of 2.37%. When compared to peers, Tata Steel's PE Ratio is lower than JSW Steel's 65.12, while it is more favorable than Jindal Steel's 22.62, which is also classified as attractive. Additionally, Tata Steel's EV to EBITDA ratio is competitive against the industry average. Despite a recent decline in stock performance relative to the Sensex over the past year, the long-term returns of 373.65% over five years suggest a strong growth trajectory, reinforcing the view that Tata Steel is undervalued in the current market.
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