Is Tata Steel overvalued or undervalued?

As of 11 July 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, with a PE ratio of 52.69, an EV to EBITDA of 11.16, and a PEG ratio of 1.36. In comparison to its peers, Tata Steel's valuation metrics stand out; for instance, JSW Steel has a significantly higher PE ratio of 67.26, while Jindal Steel, which is also attractive, has a much lower PE of 23.66.
Despite a recent decline in stock price, Tata Steel has shown strong performance over the longer term, with a YTD return of 15.75% compared to the Sensex's 5.58%. This suggests that, while the stock may have faced short-term challenges, its overall valuation remains compelling in the context of its industry peers.