Is Usha Martin overvalued or undervalued?

As of 6 November 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 based on its high valuation ratios, including a PE Ratio of 34.68, an EV to EBITDA of 24.10, and a Price to Book Value of 5.09. These figures suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Usha Martin's PE Ratio is notably lower than that of JSW Steel, which stands at 46.66, but higher than Tata Steel's PE of 45.59, indicating that while it is less expensive than the highest-valued competitor, it still does not present a compelling value proposition. The company's recent stock performance has outpaced the Sensex, with a year-to-date return of 22.42% compared to the Sensex's 6.62%, reinforcing the notion that while the stock may be overvalued, it has been a strong performer in the market.