Is Usha Martin overvalued or undervalued?

As of 13 November 2025, Usha Martin's valuation grade has moved from very expensive to expensive, indicating a slight improvement in perceived value but still reflecting a high valuation. The company is currently considered overvalued. Key ratios include a PE ratio of 32.69, an EV to EBITDA of 22.72, and a Price to Book Value of 4.61, all of which suggest that the stock is priced at a premium compared to its earnings and assets.
In comparison to its peers, Usha Martin's PE ratio is significantly higher than that of Tata Steel at 29.61 and Jindal Steel at 27.84, both of which are categorized as fairly valued. Additionally, the PEG ratio of Usha Martin stands at 0.00, which is notably lower than that of JSW Steel at 2.56, indicating a lack of growth expectations priced into Usha Martin's stock. Despite recent stock performance showing a 19.25% return year-to-date compared to the Sensex's 8.11%, the high valuation metrics suggest that Usha Martin may not sustain such performance levels moving forward.