Is Tata Steel overvalued or undervalued?
As of October 3, 2025, Tata Steel's valuation has shifted from attractive to fair, with a PE ratio of 44.55, an EV to EBITDA ratio of 11.48, and a PEG ratio of 0.86, indicating it is fairly valued compared to peers like JSW Steel and Jindal Steel, while also outperforming the Sensex with a year-to-date return of 25.42%.
As of 3 October 2025, Tata Steel's valuation grade has moved from attractive to fair, indicating a shift in its perceived investment quality. The company is currently fairly valued, with a PE ratio of 44.55, an EV to EBITDA ratio of 11.48, and a PEG ratio of 0.86. These ratios suggest that while Tata Steel is not undervalued, it is also not significantly overvalued compared to its peers.In comparison to its industry counterparts, Tata Steel's PE ratio is lower than that of JSW Steel, which stands at 55.61, but higher than Jindal Steel's 26.18. Additionally, Tata Steel's EV to EBITDA ratio is competitive, especially when considering the higher ratios of some peers like Lloyds Metals at 34.27. Notably, Tata Steel has outperformed the Sensex in various time frames, including a year-to-date return of 25.42% compared to the Sensex's 3.93%, reinforcing its position in the market despite the recent grade change.
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