Is Usha Martin overvalued or undervalued?

As of 17 October 2025, Usha Martin's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued. Key ratios include a PE Ratio of 34.41, an EV to EBITDA of 23.91, and a Price to Book Value of 5.05, which are all on the higher side compared to its peers.
In comparison, JSW Steel, also classified as expensive, has a significantly higher PE Ratio of 55.74, while Tata Steel, rated as fair, has a PE Ratio of 44.31. This suggests that Usha Martin, despite being overvalued, is relatively more attractive than some of its peers in terms of earnings. Additionally, Usha Martin's stock has outperformed the Sensex with a YTD return of 21.45% compared to the Sensex's 7.44%, reinforcing its strong performance in the market despite its valuation concerns.