Is Mesabi Trust overvalued or undervalued?

As of 28 November 2025, the valuation grade for Mesabi Trust has moved from very attractive to attractive. The company appears to be undervalued, particularly given its low P/E ratio of 4, a PEG ratio of 0.01, and an EV to EBITDA ratio of 2.64. In comparison, Ryerson Holding Corp. has a P/E ratio of -32.11, while Metallus, Inc. shows a P/E of -61.98, indicating that Mesabi Trust is relatively more favorable among its peers in the ferrous metals industry.
Despite its attractive valuation metrics, Mesabi Trust has underperformed against the S&P 500 over longer periods, with a 5-year return of 35.57% compared to the S&P's 88.25%. However, in the past year, it has outperformed the index with an 18.63% return versus the S&P 500's 14.18%. This mixed performance suggests that while the stock is undervalued, it may face challenges in sustaining growth relative to broader market trends.