Is Mesabi Trust overvalued or undervalued?

As of 30 June 2025, the valuation grade for Mesabi Trust has moved from fair to attractive, indicating a shift in its perceived value. The company appears undervalued, supported by a P/E ratio of 4, an EV to EBITDA ratio of 2.64, and an impressive ROE of 399.84%. In comparison to its peers, Ryerson Holding Corp. has a significantly higher P/E ratio of -32.11, while Metallus, Inc. shows a P/E of -61.98, further highlighting Mesabi Trust's relative attractiveness.
Despite recent underperformance against the S&P 500, with a 1-year return of 43.22% compared to the index's 17.14%, the long-term perspective remains favorable. The company's low valuation ratios and strong return metrics suggest it is well-positioned for future growth, reinforcing the conclusion that it is undervalued in the current market.