Is Avalon Holdings Corp. overvalued or undervalued?

As of 8 August 2025, the valuation grade for Avalon Holdings Corp. has moved from expensive to risky, indicating a shift in perception regarding its financial health and market position. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 10, a Price to Book Value of 0.26, and an EV to EBITDA of 6.50. Compared to peers, Avalon’s valuation ratios are concerning; for instance, Perma-Fix Environmental Services has a P/E of -12.21, while Ambipar Emergency Response, which is considered attractive, has a P/E of 19.32.
The stock's recent performance shows a mixed picture, with a 1-year return of 4.12% compared to the S&P 500's 17.14%, suggesting that while it has outperformed the index over the past year, it has significantly lagged in longer-term performance, particularly with a year-to-date return of -34.89% versus the S&P 500's 12.22%. Overall, Avalon Holdings Corp. is assessed as overvalued in its current market context.