Is Usha Martin overvalued or undervalued?

As of 7 November 2025, Usha Martin's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently deemed overvalued based on its high PE ratio of 35.28, a Price to Book Value of 5.18, and an EV to EBITDA of 24.51. Compared to peers, Usha Martin's valuation stands out, especially against JSW Steel, which has a PE of 46.73, and Tata Steel, with a PE of 46.67, both of which are also in the expensive range but not as high as Usha Martin.
Given these ratios and the peer comparison, Usha Martin appears to be overvalued. The company's recent stock performance has outpaced the Sensex, with a year-to-date return of 24.55% compared to the Sensex's 6.50%, which may suggest strong market sentiment. However, the elevated valuation metrics indicate that the stock may not be sustainable at its current price levels.