Is Cleveland-Cliffs, Inc. overvalued or undervalued?

As of 4 November 2024, the valuation grade for Cleveland-Cliffs, Inc. has moved from attractive to risky, indicating a significant shift in the company's financial outlook. The company is currently considered overvalued, especially given its troubling financial ratios. The P/E ratio is not applicable due to the company being loss-making, while the Price to Book Value stands at 0.61, and the EV to EBITDA is extraordinarily high at 5677.44, suggesting severe operational inefficiencies.
In comparison to peers, Reliance, Inc. has a fair P/E ratio of 20.69, and United States Steel Corp. shows an attractive P/E of 146.48, highlighting the stark contrast in valuation and performance. Additionally, Cleveland-Cliffs has a negative ROE of -16.05% and a ROCE of -7.25%, further emphasizing its struggles. The company's stock has underperformed significantly, with a year-to-date return of -26.38% compared to the S&P 500's 2.44%, reinforcing the notion that it is currently overvalued.