Is United States Steel Corp. overvalued or undervalued?

As of 7 May 2025, the valuation grade for United States Steel Corp. has moved from expensive to attractive, indicating a shift in perception towards the company's stock. Based on the current metrics, the company appears undervalued with a P/E ratio of 143, significantly higher than its peer Nucor Corp. at 27.41, and an EV to EBITDA ratio of 23.73, which is also elevated compared to Steel Dynamics, Inc. at 17.78. The Price to Book Value stands at 1.37, suggesting that the stock is trading at a premium relative to its book value.
In comparison to its peers, United States Steel Corp. has a higher valuation profile, yet its recent stock performance has outpaced the S&P 500, with a year-to-date return of 61.34% compared to the index's 12.22%. This strong performance over multiple periods, including a 5-year return of 576.2% versus the S&P 500's 96.61%, reinforces the notion that the stock may be undervalued despite its high P/E ratio.