Is Olympic Steel, Inc. overvalued or undervalued?

Oct 19 2025 11:57 AM IST
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As of October 17, 2025, Olympic Steel, Inc. is considered overvalued due to its high P/E ratio of 21 compared to peers, a premium EV to EBITDA ratio of 8.22, and a poor 1-year return of -30.73% against the S&P 500's 14.08%.
As of 17 October 2025, the valuation grade for Olympic Steel, Inc. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 21, which is significantly higher than its peers such as Insteel Industries, Inc. with a P/E of 22.80 and Park-Ohio Holdings Corp. at 9.58. Additionally, the EV to EBITDA ratio of 8.22 suggests a premium compared to the industry, where NL Industries, Inc. stands out with a notably lower EV to EBITDA of 4.41.

The company's return performance has been lackluster, with a 1-year return of -30.73% compared to the S&P 500's 14.08%, reinforcing the notion of overvaluation. Overall, the combination of high valuation ratios and poor recent performance suggests that Olympic Steel, Inc. is currently overvalued in the market.
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