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 shift in its market positioning. The company is currently considered overvalued. Key ratios include a PE ratio of 35.28, an EV to EBITDA of 24.51, and a Price to Book Value of 5.18, all of which 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 lower than JSW Steel's 46.73 and Tata Steel's 46.67, but it remains higher than Jindal Steel's 27.5. The PEG ratio of 0.00 indicates that there is no growth expected, which further supports the overvaluation narrative. Despite the company's strong performance relative to the Sensex, with a year-to-date return of 24.55% compared to the Sensex's 6.50%, the current valuation metrics suggest that investors should exercise caution.