Is Tata Steel overvalued or undervalued?

As of 18 July 2025, Tata Steel's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time. Key ratios include a PE ratio of 53.57, an EV to EBITDA of 11.29, and a ROCE of 8.56%. When compared to peers, Tata Steel's PE ratio is lower than that of JSW Steel, which stands at 66.92, but higher than Jindal Steel's attractive PE of 24.17. This suggests that while Tata Steel is on par with some competitors, it may still be overvalued relative to others in the industry. Notably, Tata Steel has outperformed the Sensex with a year-to-date return of 17.67% compared to the Sensex's 4.63%, reinforcing its competitive position in the market.