Is Radius Recycling, Inc. overvalued or undervalued?

As of 25 October 2023, the valuation grade for Radius Recycling, Inc. has moved from very expensive to risky, indicating a significant shift in its financial outlook. The company is currently assessed as overvalued, particularly given its negative P/E ratio due to losses, a Price to Book Value of 1.54, and an EV to EBITDA ratio of 65.12, which is considerably high compared to industry norms.
In comparison with peers, Radius Recycling's EV to EBIT stands at -16.44, while Ryerson Holding Corp. has a much lower EV to EBITDA of 11.81, and Metallus, Inc. shows a similar trend with an EV to EBITDA of 12.05. Additionally, the company has a negative ROCE of -7.88% and ROE of -11.69%, further emphasizing its financial struggles. Despite a strong one-year stock return of 103.29% compared to the S&P 500's 10.26%, the current valuation metrics suggest that Radius Recycling is not a sound investment at its current price of 29.66.