Is Welspun Corp overvalued or undervalued?

As of 17 July 2025, Welspun Corp's valuation grade has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios supporting this assessment include a PE Ratio of 16.04, an EV to EBITDA of 14.27, and a Price to Book Value of 3.28. Compared to its peers, such as JSW Steel with a PE of 66.88 and Tata Steel with a PE of 52.69, Welspun Corp appears to be trading at a relatively lower valuation, but still falls into the expensive category.
The company's strong ROCE of 19.47% and ROE of 20.47% suggest efficient capital utilization, yet these metrics do not justify the current valuation levels. Additionally, while Welspun Corp has outperformed the Sensex with a year-to-date return of 14.86% compared to the Sensex's 5.27%, this performance does not mitigate the overvaluation indicated by the current ratios. Overall, Welspun Corp is assessed as overvalued in the current market environment.