Is Olympic Steel, Inc. overvalued or undervalued?

As of 14 November 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, 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 not provided, making it challenging to draw direct comparisons.
In terms of profitability, Olympic Steel's ROCE is notably low at 4.94% and ROE at 2.87%, suggesting inefficiencies in generating returns relative to its equity. Compared to its peers, NL Industries, Inc. shows a much more attractive valuation with a P/E of 4.86 and an EV to EBITDA of 4.41. Overall, the high valuation ratios and low return metrics indicate that Olympic Steel, Inc. is overvalued in the current market context. While specific return data is not available, the lack of positive performance relative to the S&P 500 may further support this valuation conclusion.