Is Avalon Holdings Corp. overvalued or undervalued?

As of 23 May 2025, Avalon Holdings Corp. has moved from a fair to an attractive valuation grade, indicating a shift in its perceived investment potential. The company appears to be undervalued based on its financial metrics, with a P/E ratio of 10, a price-to-book value of 0.26, and an EV to EBITDA ratio of 6.50. These figures suggest that the stock is trading at a significant discount compared to its intrinsic value.
In comparison to its peers, Avalon Holdings Corp. has a more favorable PEG ratio of 0.08 and an EV to EBIT of 16.89, while competitors like Purecycle Technologies, Inc. and Enviri Corp. are struggling with negative P/E ratios. Despite a challenging year-to-date performance of -36.95% compared to the S&P 500's 2.44%, the company's recent 1-year return of 17.31% outperforms the index's 10.26%, reinforcing the notion that Avalon Holdings Corp. is currently undervalued.