Is Mesabi Trust overvalued or undervalued?

As of 24 April 2025, the valuation grade for Mesabi Trust has moved from very attractive to attractive, indicating a shift in perception regarding its value. The company is currently considered undervalued, primarily due to its low P/E ratio of 4 and an impressive ROE of 399.84%. Additionally, the EV to EBITDA ratio stands at 2.64, which is favorable compared to its peers.
In comparison to its peers, Mesabi Trust's P/E ratio of 3.35 is significantly lower than that of Radius Recycling, Inc., which has a P/E of -13.17, and Ryerson Holding Corp. at -40.46. This suggests that Mesabi Trust is trading at a more attractive valuation relative to its industry. Despite recent underperformance against the S&P 500, with a year-to-date return of -18.71% compared to the index's 2.44%, the underlying financial metrics indicate that Mesabi Trust remains a compelling investment opportunity.