Is LSI Industries, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for LSI Industries, Inc. moved from expensive to fair. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 21, an EV to EBITDA of 11.86, and a Price to Book Value of 2.25. In comparison, peers such as Quanex Building Products Corp. have a higher P/E of 26.26 and a significantly lower EV to EBITDA of 8.05, indicating that LSI is relatively more attractively priced in its industry.
While LSI Industries has shown strong long-term performance with a 171.13% return over the past five years compared to the S&P 500's 91.73%, it has underperformed in the shorter term, with a -15.07% return over the past week against the S&P 500's -1.63%. This mixed performance suggests that while the company is currently fairly valued, market sentiment may be affecting its short-term stock performance.