Is Constellium SE overvalued or undervalued?

As of 20 February 2025, the valuation grade for Constellium SE has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently deemed overvalued, with a P/E ratio of 21, which is lower than the peer average of approximately 22.02 for Constellium, but still suggests that the stock may not justify its current price based on earnings. Additionally, the EV to EBITDA ratio stands at 6.09, which is more favorable compared to some peers like Grand Canyon Education, Inc. with a ratio of 21.81, yet still raises concerns about Constellium's valuation.
In terms of performance metrics, Constellium's ROCE is 11.25% and ROE is 11.77%, which are respectable but do not significantly differentiate it from its peers. For instance, MAXIMUS, Inc. has a lower P/E of 12.96 and an EV to EBITDA of 7.99, indicating a more attractive valuation. Furthermore, the company's recent stock performance has been underwhelming, with a 1-year return of -35.09% compared to the S&P 500's 10.26%, reinforcing the notion that the stock may be overvalued in the current market context.