Is Centrus Energy Corp. overvalued or undervalued?

As of 4 March 2025, Centrus Energy Corp. has moved from a fair to attractive valuation grade. The company is currently considered overvalued based on its key financial ratios. The P/E ratio stands at 25, which is significantly higher than the industry average of approximately 12.49 for U.S. Silica Holdings, indicating a premium valuation. Additionally, the EV to EBITDA ratio is 24.48, while its PEG ratio is 1.14, suggesting that the stock may be priced for growth that may not be sustainable.
In comparison to its peers, Centrus Energy Corp. has a P/E ratio of 30.18, which is much higher than U.S. Silica Holdings, Inc. at 12.49 and indicates a stark divergence in valuation. The company's recent stock performance has been impressive, with a year-to-date return of 188.62%, significantly outpacing the S&P 500's return of 2.44% over the same period. However, the high valuation ratios suggest that the stock may be overextended, warranting caution for potential investors.