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, with a P/E ratio of 14, significantly lower than the peer average of 18.46, and an EV to EBITDA ratio of 8.04 compared to the industry average of 9.51. Additionally, the Price to Book Value stands at 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 currently in a risky position with a negative P/E of -3.94. Notably, Commercial Metals Co. has delivered a year-to-date return of 15.69%, outperforming the S&P 500's return of 13.30% in the same period, although it has lagged in the longer three-year and ten-year periods. Overall, these metrics support the conclusion that Commercial Metals Co. is currently undervalued.