Is Usha Martin overvalued or undervalued?

As of 14 August 2025, Usha Martin's valuation grade has moved from fair to expensive, indicating a shift in its market position. The company is currently considered overvalued, with a PE ratio of 26.45, a Price to Book Value of 3.89, and an EV to EBITDA ratio of 18.44. These figures suggest that the stock is trading at a premium compared to its earnings and asset values.
In comparison to its peers, Usha Martin's PE ratio is notably higher than that of Jindal Steel, which has a PE of 23.72, and SAIL, which stands at 16.33. Additionally, Tata Steel, considered attractive, has a PE of 39.95, further highlighting Usha Martin's relative overvaluation. While the stock has shown strong long-term performance with a 3-year return of 149.09%, its recent performance has lagged behind the Sensex, with a year-to-date return of -6.63% compared to the Sensex's positive 3.15%.