Is Ryerson Holding Corp. overvalued or undervalued?

As of 20 February 2025, the valuation grade for Ryerson Holding Corp. has moved from expensive to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued based on its current metrics, particularly with a Price to Book Value of 0.88, an EV to EBITDA ratio of 12.08, and a Dividend Yield of 363.12%. In comparison to peers, Metallus, Inc. has a more favorable EV to EBITDA of 12.28, while Mesabi Trust stands out with an attractive EV to EBITDA of 4.13.
Despite Ryerson's strong recent performance, with a year-to-date return of 25.50% compared to the S&P 500's 12.22%, the underlying valuation ratios suggest that the stock may not be justified at its current price level. The negative ROE of -2.10% further supports the notion that the company is facing significant challenges, reinforcing the conclusion that it is overvalued in the current market context.