Is Cleveland-Cliffs, Inc. overvalued or undervalued?

As of 4 November 2024, the valuation grade for Cleveland-Cliffs, Inc. has moved from expensive to risky, indicating a shift towards a more cautious outlook. The company appears to be overvalued based on several key metrics, including a Price to Book Value of 0.61, an EV to Sales ratio of 0.61, and a troubling ROE of -16.05%. In comparison to peers, Commercial Metals Co. has a P/E of 18.46, while Worthington Enterprises, Inc. shows a P/E of 25.62, highlighting Cleveland-Cliffs' relative weakness.
Recent stock performance shows Cleveland-Cliffs underperforming against the S&P 500, with a 1-week return of -3.05% compared to the index's 1.05%, and a 3-year return of -23.80% versus 70.41% for the S&P 500. This underperformance, coupled with the company's negative financial ratios, reinforces the conclusion that Cleveland-Cliffs is overvalued in its current market position.