Is Myers Industries, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Myers Industries, Inc. has moved from expensive to very expensive, indicating a significant concern regarding its valuation. The company is currently overvalued, with a P/E ratio of 18, which is lower than its peer, Omega Flex, Inc. at 20.93, but still reflects a high valuation in the context of its industry. Additionally, the EV to EBITDA ratio stands at 8.51, and the Price to Book Value is 2.22, further supporting the notion of overvaluation.
In comparison to its peers, Myers Industries, Inc. has a higher P/E ratio than Matthews International Corp., which is at 255.76, but lower than Omega Flex, Inc. This suggests that while Myers is overvalued, it is not the most extreme case among its peers. Over the past year, Myers Industries has returned 16.28%, slightly lagging behind the S&P 500's return of 17.14%, and over the last five years, it has returned 18.62%, significantly underperforming the S&P 500's 96.61%. This performance reinforces the view that the stock may not justify its current valuation.