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. This indicates that the company is currently overvalued. Key valuation ratios include a P/E ratio of 14, an EV to EBITDA of 8.04, and a Price to Book Value of 1.50. In comparison, peers such as Worthington Enterprises, Inc. have a significantly higher P/E ratio of 25.62, while Cleveland-Cliffs, Inc. shows a negative P/E, highlighting the mixed performance within the sector.
Despite recent stock performance showing a 5-year return of 188.55% compared to the S&P 500's 91.73%, the company's current valuation metrics suggest it may not sustain such growth moving forward. The notable outperformance in the short term contrasts with the long-term underperformance over 10 years, where the S&P 500 outpaced Commercial Metals Co. by a considerable margin.