Is Commercial Metals Co. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Commercial Metals Co. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on key ratios, including a P/E ratio of 14, which is significantly lower than the peer average of 18.46 for similar companies like Worthington Enterprises, Inc., which has a P/E of 25.62. Additionally, the EV to EBITDA ratio stands at 8.04, while peers like Cleveland-Cliffs, Inc. exhibit a negative P/E, further highlighting the relative valuation concerns.
In terms of returns, Commercial Metals Co. has shown a year-to-date return of 18.49%, outperforming the S&P 500's 14.40%, but has lagged over the one-year period with a return of -3.73% compared to the S&P 500's 12.65%. Given these factors, the company is assessed as overvalued in the current market context.