Is L.B. Foster Co. overvalued or undervalued?

As of 27 August 2025, the valuation grade for L.B. Foster Co. has moved from very attractive to attractive. The company appears to be undervalued, given its P/E ratio of 6, which is significantly lower than the peer average of 8.14, and a PEG ratio of 0.02, indicating strong growth potential relative to its price. Additionally, the EV to EBITDA ratio stands at 10.88, which is higher than the industry average, suggesting that while the company is priced attractively, it may not be fully capturing its earnings potential.
In comparison to its peers, Douglas Dynamics, Inc. has a P/E ratio of 11.82, while The Manitowoc Co., Inc. has a P/E of 8.08, both indicating that L.B. Foster Co. is trading at a discount. Over the past year, L.B. Foster Co. has returned 39.46%, outperforming the S&P 500's 17.14%, reinforcing the notion that the stock may be undervalued relative to its performance.