Is LSI Industries, Inc. overvalued or undervalued?

As of 14 November 2025, the valuation grade for LSI Industries, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current metrics, with a P/E ratio of 21, a Price to Book Value of 2.25, and an EV to EBITDA of 11.86. Comparatively, its peer Quanex Building Products Corp. has a higher P/E of 26.26 but a much lower EV to EBITDA of 8.05, suggesting that LSI is trading at a premium relative to its peers.
In terms of performance, LSI Industries has underperformed against the S&P 500 in the short term, with a year-to-date return of -5.25% compared to the index's 14.49%. However, over a longer horizon, the company has shown a strong 150% return over the past five years, outpacing the S&P 500's 87.83%. This mixed performance reinforces the notion that while LSI Industries has had some historical success, its current valuation may not be justified given its recent stock performance and the elevated valuation ratios.