Is MRC Global, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for MRC Global, Inc. has moved from expensive to very expensive, indicating a significant concern regarding its current pricing. The company appears to be overvalued, particularly when considering its P/E ratio of 23, which is substantially higher than peers like Boise Cascade Co. with a P/E of 14.29 and Sunoco LP at 26.68. Additionally, MRC Global's EV to EBITDA ratio stands at 11.13, which is also elevated compared to the industry average.
In terms of performance, MRC Global has shown a 1-year return of 16.88%, slightly trailing the S&P 500's return of 17.14%. However, over a 5-year period, MRC Global has outperformed the S&P 500 with a return of 144.72% compared to 96.61%. This mixed performance, coupled with its high valuation ratios, reinforces the conclusion that MRC Global, Inc. is currently overvalued in the market.