Is Steel Partners Holdings LP overvalued or undervalued?

As of 30 May 2025, the valuation grade for Steel Partners Holdings LP has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered undervalued, with a P/E ratio of 5, significantly lower than peers such as HollySys Automation Technologies Ltd. with a P/E of 21.82 and Thermon Group Holdings, Inc. at 17.02. Additionally, Steel Partners boasts a robust ROCE of 24.86% and an ROE of 22.90%, suggesting strong operational efficiency and profitability.
In terms of valuation metrics, the EV to EBITDA ratio stands at 3.99, which is favorable compared to the industry average. The PEG ratio of 0.06 further emphasizes the company's growth potential relative to its price. Despite a recent underperformance year-to-date compared to the S&P 500, Steel Partners has shown a remarkable 600.85% return over the past five years, reinforcing its potential as an undervalued investment opportunity.