JSW Steel Limited

BSE:500228 Stock Report

Market Cap: ₹2.3t

JSW Steel Valuation

Is 500228 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 500228 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 500228 (₹938.85) is trading below our estimate of fair value (₹1297.73)

Significantly Below Fair Value: 500228 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 500228?

Key metric: As 500228 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 500228. This is calculated by dividing 500228's market cap by their current earnings.
What is 500228's PE Ratio?
PE Ratio45.8x
Earnings₹49.98b
Market Cap₹2.29t

Price to Earnings Ratio vs Peers

How does 500228's PE Ratio compare to its peers?

The above table shows the PE ratio for 500228 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.6x
500470 Tata Steel
59x60.6%₹1.7t
JINDALSTEL Jindal Steel & Power
17.7x33.2%₹895.0b
526371 NMDC
10.5x10.8%₹641.4b
JSL Jindal Stainless
23.3x29.5%₹571.9b
500228 JSW Steel
45.8x47.6%₹2.3t

Price-To-Earnings vs Peers: 500228 is expensive based on its Price-To-Earnings Ratio (45.8x) compared to the peer average (27.6x).

Price to Earnings Ratio vs Industry

How does 500228's PE Ratio compare vs other companies in the IN Metals and Mining Industry?

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
590078 Maithan Alloys
3.8xn/aUS$372.19m
526608 Electrotherm (India)
3.7xn/aUS$164.71m
PRAKASHSTL Prakash Steelage
3.8xn/aUS$16.83m
522165 Indsil Hydro Power and Manganese
1.6xn/aUS$16.53m
500228 45.8xIndustry Avg. 24.5xNo. of Companies30PE01632486480+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 500228 is expensive based on its Price-To-Earnings Ratio (45.8x) compared to the Indian Metals and Mining industry average (24.5x).

Price to Earnings Ratio vs Fair Ratio

What is 500228's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

500228 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio45.8x
Fair PE Ratio66.8x

Price-To-Earnings vs Fair Ratio: 500228 is good value based on its Price-To-Earnings Ratio (45.8x) compared to the estimated Fair Price-To-Earnings Ratio (66.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 500228 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹938.85
₹987.16
+5.1%
14.4%₹1,255.00₹700.00n/a32
Nov ’25₹967.65
₹987.16
+2.0%
14.4%₹1,255.00₹700.00n/a32
Oct ’25₹1,027.70
₹962.26
-6.4%
14.1%₹1,220.00₹650.00n/a31
Sep ’25₹940.95
₹933.73
-0.8%
13.0%₹1,170.00₹650.00n/a30
Aug ’25₹934.05
₹923.00
-1.2%
14.0%₹1,170.00₹650.00n/a29
Jul ’25₹943.60
₹928.21
-1.6%
13.9%₹1,140.00₹650.00n/a29
Jun ’25₹881.45
₹919.32
+4.3%
14.1%₹1,140.00₹650.00n/a28
May ’25₹882.60
₹849.89
-3.7%
10.8%₹1,017.00₹650.00n/a27
Apr ’25₹871.30
₹841.42
-3.4%
10.7%₹1,000.00₹650.00n/a26
Mar ’25₹835.85
₹835.35
-0.06%
10.5%₹1,000.00₹620.00n/a26
Feb ’25₹801.80
₹827.71
+3.2%
11.4%₹1,000.00₹605.00n/a28
Jan ’25₹877.35
₹786.50
-10.4%
11.6%₹940.00₹600.00n/a28
Dec ’24₹811.10
₹775.93
-4.3%
12.1%₹940.00₹585.00n/a29
Nov ’24₹724.70
₹775.93
+7.1%
12.1%₹940.00₹585.00₹967.6529
Oct ’24₹779.25
₹747.66
-4.1%
13.2%₹956.00₹580.00₹1,027.7029
Sep ’24₹806.20
₹753.80
-6.5%
14.3%₹990.00₹580.00₹940.9530
Aug ’24₹820.80
₹745.47
-9.2%
13.9%₹990.00₹580.00₹934.0530
Jul ’24₹784.75
₹705.14
-10.1%
14.4%₹990.00₹510.00₹943.6028
Jun ’24₹693.50
₹695.32
+0.3%
13.6%₹990.00₹510.00₹881.4528
May ’24₹725.30
₹680.79
-6.1%
15.2%₹990.00₹470.00₹882.6028
Apr ’24₹688.05
₹679.93
-1.2%
15.7%₹990.00₹470.00₹871.3028
Mar ’24₹676.80
₹679.93
+0.5%
15.7%₹990.00₹470.00₹835.8528
Feb ’24₹729.80
₹666.55
-8.7%
16.4%₹990.00₹470.00₹801.8031
Jan ’24₹767.90
₹593.63
-22.7%
14.9%₹757.00₹330.00₹877.3530
Dec ’23₹746.10
₹570.43
-23.5%
13.5%₹690.00₹330.00₹811.1030
Nov ’23₹686.30
₹548.55
-20.1%
14.3%₹685.00₹330.00₹724.7031

Analyst Forecast: Target price is less than 20% higher than the current share price.

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