Is Commercial Metals Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Commercial Metals Co. moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued based on its current metrics, with a P/E ratio of 14, an EV to EBITDA of 8.04, and a Price to Book Value of 1.50. In comparison to peers, Commercial Metals Co. has a more attractive valuation than Cleveland-Cliffs, Inc., which has a negative P/E ratio, and Worthington Enterprises, Inc., which has a higher P/E of 25.62.
Despite a recent dip in stock performance over the past month, where it returned -1.88% compared to the S&P 500's 0.96%, the year-to-date return of 15.69% outpaces the S&P 500's 13.30%, reinforcing the notion that the stock is positioned well in the market. Overall, the combination of favorable valuation ratios and the recent grade change supports the conclusion that Commercial Metals Co. is undervalued.