Is Usha Martin overvalued or undervalued?

As of 8 August 2025, Usha Martin's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 25.44, an EV to EBITDA ratio of 17.60, and a ROCE of 17.25%. In comparison to its peers, JSW Steel has a significantly higher PE ratio of 50.11, while Tata Steel, which is rated attractive, has a PE ratio of 40.64 and an EV to EBITDA of 10.75.
Despite recent underperformance, with a year-to-date return of -9.47% compared to the Sensex's 2.20%, Usha Martin's valuation metrics suggest it is positioned reasonably within its industry. The PEG ratio of 0.00 indicates potential for growth relative to its earnings, further supporting the conclusion that the company is fairly valued in the current market landscape.