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 shift in perception regarding its financial health and market position. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 1.54 and an EV to Sales ratio of 0.47, which suggests that the market may not be accurately reflecting its underlying value. Additionally, the EV to EBITDA ratio stands at 65.12, highlighting significant concerns about profitability.
In comparison to its peers, Radius Recycling, Inc. has a notably negative EV to EBIT of -16.44, while Commercial Metals Co. shows a more favorable P/E of 18.46 and an EV to EBITDA of 9.51, indicating a healthier valuation. Cleveland-Cliffs, Inc. also reflects a risky valuation with an EV to EBITDA of -47.28, but Radius's ratios suggest it is lagging behind its competitors. Notably, the company's year-to-date stock return of 97.11% significantly outperformed the S&P 500's 12.22%, but this may not be sustainable given the underlying financial challenges.