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 overvalued based on its current metrics, with a P/E ratio of 14, a Price to Book Value of 1.50, and an EV to EBITDA ratio of 8.04. In comparison, peers such as Worthington Enterprises, Inc. have a P/E ratio of 25.62 and an EV to EBITDA of 33.46, suggesting that Commercial Metals Co. is priced lower than some competitors but still reflects a high valuation in its current state.
Additionally, while the company has shown strong returns, particularly over the 5-year period with a return of 204.67%, it has underperformed the S&P 500 over the past year with a return of -3.73% compared to the index's 12.65%. This performance, alongside the recent grade change, reinforces the conclusion that Commercial Metals Co. is currently overvalued.