Is Usha Martin overvalued or undervalued?

As of 3 November 2025, Usha Martin's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived valuation. The company is currently considered overvalued. Key ratios include a PE ratio of 36.04, an EV to EBITDA of 25.03, and a Price to Book Value of 5.29, all of which suggest that the stock is trading at a premium compared to its earnings and asset value.
In comparison to its peers, Usha Martin's PE ratio is notably higher than that of Tata Steel, which has a PE of 46.98 and is rated fair, and Jindal Steel, which is rated expensive with a PE of 27.57. The disparity in valuation metrics, particularly the PEG ratio of 0.00 for Usha Martin, further emphasizes the overvaluation concern. Additionally, Usha Martin has outperformed the Sensex in recent periods, with a year-to-date return of 27.21% compared to the Sensex's 7.47%, which may contribute to the inflated valuation perception.