Is Tata Steel overvalued or undervalued?

As of 24 June 2025, Tata Steel's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 51.03, an EV to EBITDA of 10.91, and a ROCE of 8.56%. In comparison to its peers, JSW Steel has a higher PE ratio of 65.14 and an EV to EBITDA of 14.23, while Jindal Steel is rated attractive with a significantly lower PE ratio of 23.34 and an EV to EBITDA of 11.25.
The current valuation suggests that Tata Steel is neither undervalued nor overvalued, aligning closely with its peers in the market. Notably, the company's stock has outperformed the Sensex over a three-year period, returning 81.51% compared to the Sensex's 55.62%, reinforcing its competitive position in the ferrous metals industry.