Is Ascent Industries Co. overvalued or undervalued?

As of 8 August 2023, the valuation grade for Ascent Industries Co. has moved from expensive to risky, indicating a shift towards a more cautious outlook. The company appears to be overvalued given its current financial metrics, particularly with a Price to Book Value of 1.65 and an EV to EBITDA ratio of 19.39, which are relatively high compared to its peers. Additionally, the company has a negative ROE of -7.76%, further suggesting underlying financial challenges.
In comparison to its peers, Ascent Industries Co. has a P/E ratio of -15.96, while Ryerson Holding Corp. shows a P/E of -32.11, and Metallus, Inc. has a P/E of -61.98, indicating that all companies in this sector are struggling. However, Universal Stainless & Alloy Products, Inc. stands out with an attractive P/E of 15.89 and an EV to EBITDA of 8.38, highlighting a more favorable valuation. Despite recent stock performance showing a 37.66% return over the past year compared to the S&P 500's 17.14%, the overall valuation metrics suggest that Ascent Industries Co. remains overvalued in the current market context.