Is LSI Industries, Inc. overvalued or undervalued?

As of 14 November 2025, the valuation grade for LSI Industries, Inc. moved from expensive to very expensive, indicating a significant shift in its valuation outlook. The company appears to be overvalued, with a P/E ratio of 21, a Price to Book Value of 2.25, and an EV to EBITDA ratio of 11.86, which are all higher than the peer average. In comparison, Quanex Building Products Corp. has a P/E ratio of 26.26 and an EV to EBITDA of 8.05, suggesting that LSI's valuation metrics are not justified relative to its peers.
Despite a strong historical performance over the last 5 years with a return of 150.00%, LSI Industries has underperformed the S&P 500 in the short term, with a year-to-date return of -5.25% compared to the S&P 500's 14.49%. This underperformance reinforces the notion that the stock may be overvalued in the current market environment.