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 concern regarding its valuation. The company appears to be overvalued based on its P/E ratio of 21, which is substantially lower than its peer Quanex Building Products Corp. with a P/E of 26.26. Additionally, LSI's EV to EBITDA ratio stands at 11.86, which is higher than the peer average, suggesting that the market may be pricing in excessive growth expectations.
Comparatively, LSI Industries' Price to Book Value of 2.25 also reflects a premium over the industry norms, further supporting the notion of overvaluation. The return of LSI Industries has not been provided, but the lack of positive performance compared to the S&P 500 could reinforce the sentiment surrounding its current valuation status. Overall, LSI Industries, Inc. is considered overvalued in the current market context.