Is Gulf Island Fabrication, Inc. overvalued or undervalued?

As of 6 August 2025, the valuation grade for Gulf Island Fabrication, Inc. has moved from very attractive to attractive. The company appears to be undervalued, supported by a P/E ratio of 9, an EV/EBITDA ratio of 4.08, and a PEG ratio of 0.06, which indicate that it is trading at a significant discount compared to its peers. In comparison, Insteel Industries, Inc. has a P/E ratio of 22.80, while Park-Ohio Holdings Corp. shows a P/E of 9.58, highlighting Gulf Island's relative attractiveness in valuation metrics.
Despite a recent decline in stock performance, with a 1-week return of -7.32% compared to the S&P 500's 1.05%, the company has shown resilience with a 1-year return of 33.52%, outperforming the S&P 500's 17.14%. This performance, alongside its favorable valuation ratios, reinforces the conclusion that Gulf Island Fabrication, Inc. is currently undervalued.