Is REX American Resources Corp. overvalued or undervalued?

As of 14 November 2025, the valuation grade for REX American Resources Corp. has moved from expensive to very expensive. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 24, which is significantly lower than its peer Proto Labs, Inc. at 58.60, yet higher than Ecovyst, Inc. at 18.34. Additionally, the EV to EBITDA ratio of 16.17 is also above the industry average, indicating a premium valuation.
In comparison to its peers, REX American Resources Corp. shows a relatively high EV to Sales ratio of 2.26, while its return on capital employed (ROCE) is strong at 30.23%, suggesting efficient use of capital despite the high valuation. The stock has outperformed the S&P 500 over multiple periods, with a year-to-date return of 59.41% compared to the S&P 500's 14.49%, which reflects strong market performance but does not mitigate the concerns regarding its valuation.