Is Ferroglobe PLC overvalued or undervalued?

As of 7 May 2025, the valuation grade for Ferroglobe PLC has moved from expensive to risky, indicating a deterioration in its perceived value. The company appears to be overvalued, particularly given its high EV to EBIT ratio of 197.64 and a Price to Book Value of 1.00, which does not reflect strong earnings performance. Additionally, the company has a negative ROE of -0.10%, contrasting sharply with peers like U.S. Silica Holdings, which has a fair valuation with a P/E of 12.49 and an EV to EBITDA of 5.30.
In terms of returns, Ferroglobe's performance has been mixed; while it has gained 446.75% over the past five years, it has underperformed the S&P 500 significantly over the last three years, with a return of -35.03% compared to the index's 70.41%. This disparity reinforces the notion that Ferroglobe is currently overvalued relative to its peers and market performance.