Is Usha Martin overvalued or undervalued?

As of 12 August 2025, Usha Martin's valuation grade has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios reflect this assessment, with a PE ratio of 26.06, a Price to Book Value of 3.86, and an EV to EBITDA of 18.02. These figures suggest that Usha Martin is trading at a premium compared to its peers.
In comparison with notable competitors, JSW Steel has a PE ratio of 50.15 and an EV to EBITDA of 13.47, while Tata Steel shows a more attractive valuation with a PE of 41.21 and an EV to EBITDA of 10.86. This places Usha Martin at a higher valuation relative to these peers, reinforcing the conclusion that it is overvalued. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -7.29% compared to the Sensex's 2.68%, further supporting the view of overvaluation.