Is Unison Metals overvalued or undervalued?

As of 2 June 2025, the valuation grade for Unison Metals has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 16.05, an EV to EBITDA of 8.70, and a ROE of 11.89%. In comparison to its peers, Unison Metals stands out with its favorable valuation metrics; for instance, JSW Steel has a significantly higher PE ratio of 64.98, while Tata Steel's PE is 51.92.
Despite a challenging year-to-date performance with a decline of 22.31% compared to a 5.62% gain in the Sensex, the underlying financial ratios suggest that Unison Metals presents a compelling investment opportunity. With a PEG ratio of 0.00 and robust returns on capital employed at 11.66%, the company is well-positioned in the iron and steel products industry, reinforcing its undervalued status.