Is Olympic Steel, Inc. overvalued or undervalued?

As of 8 September 2025, the valuation grade for Olympic Steel, Inc. has moved from fair to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 21, which is higher than its peers such as Insteel Industries, Inc. at 22.80 and Park-Ohio Holdings Corp. at 9.58. Additionally, the EV to EBITDA ratio stands at 8.22, while the industry average is notably higher at 14.66, suggesting that Olympic Steel is not just expensive but also less efficient in generating earnings relative to its enterprise value.
In terms of returns, Olympic Steel has underperformed compared to the S&P 500 over the past year, with a return of -13.39% versus the S&P 500's 17.14%. This trend continues over three years, where the company returned 33.31% compared to the S&P 500's 70.41%. Given these factors, Olympic Steel, Inc. is currently overvalued in the market.