Is Tata Steel overvalued or undervalued?

As of 1 October 2025, Tata Steel's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 43.09, an EV to EBITDA of 11.21, and a PEG ratio of 0.83, which suggests that the stock is priced favorably relative to its growth prospects. In comparison to its peers, Tata Steel's PE ratio is lower than that of JSW Steel, which stands at 54.74, and Jindal Steel, which is at 25.83. Additionally, Tata Steel's EV to EBITDA is more favorable than JSW Steel's 14.41, highlighting its competitive positioning in the market. Notably, Tata Steel has outperformed the Sensex over the past three years, with a return of 68.68% compared to the Sensex's 41.02%, reinforcing the attractiveness of its current valuation.