Is LSI Industries, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for LSI Industries, Inc. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company is currently considered overvalued based on its P/E ratio of 21, which is significantly lower than the peer average of 28.42 for LSI Industries, Inc. Additionally, the price-to-book value stands at 2.25, and the EV to EBITDA ratio is 11.86, both suggesting a premium valuation compared to its peers like Quanex Building Products Corp., which has a P/E of 26.26 and an EV to EBITDA of 8.05.
Despite the recent stock performance, where LSI Industries has outperformed the S&P 500 with a 1-year return of 32.83% compared to the S&P's 14.08%, the overall valuation metrics suggest that the stock may not be a compelling investment at current levels. The combination of a very expensive valuation grade and the high P/E ratio relative to peers supports the conclusion that LSI Industries, Inc. is overvalued.