Is Commercial Metals Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Commercial Metals Co. has moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company is currently considered undervalued, with a P/E ratio of 14, which is significantly lower than the peer average of 18.46 for similar companies. Additionally, the EV to EBITDA ratio stands at 8.04, again below the industry benchmark, and the Price to Book Value is 1.50, suggesting that the stock is trading at a reasonable valuation relative to its assets.
In comparison to its peers, Worthington Enterprises, Inc. has a higher P/E ratio of 25.62, while Cleveland-Cliffs, Inc. is in a risky position with a negative P/E. Notably, Commercial Metals Co. has outperformed the S&P 500 year-to-date with a return of 15.69% compared to the index's 13.30%, although it has lagged in the longer term, particularly over three and ten years. Overall, these metrics support the conclusion that Commercial Metals Co. is undervalued in the current market.