Is Park-Ohio Holdings Corp. overvalued or undervalued?

As of 7 May 2025, the valuation grade for Park-Ohio Holdings Corp. has moved from fair to attractive, indicating a more favorable assessment of its value. The company appears to be undervalued based on its current metrics. The P/E ratio stands at 7, significantly lower than the industry average, while the EV to EBITDA ratio is 7.68, suggesting that the company is generating solid earnings relative to its enterprise value. Additionally, the Price to Book Value is 0.91, which further supports the undervaluation thesis.
In comparison to peers, Park-Ohio Holdings Corp. has a P/E ratio of 7.23, while Xometry, Inc. is rated risky with a P/E of -34.24, and Insteel Industries, Inc. is considered expensive with a P/E of 28.50. The PEG ratio for Park-Ohio is 4.38, which, while high, is still more favorable than some peers. Notably, the company has underperformed against the S&P 500 over the past year, with a return of -29.78% compared to the index's 10.26%, but its current valuation suggests potential for recovery.