Is Worthington Enterprises, Inc. overvalued or undervalued?

As of 28 April 2025, Worthington Enterprises, Inc. has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued based on its key financial ratios. The P/E ratio stands at 23, while the EV to EBITDA ratio is notably high at 37.70, indicating a premium valuation compared to its earnings before interest, taxes, depreciation, and amortization. Additionally, the Price to Book Value is 3.21, suggesting that the stock is trading at a significant premium to its book value.
In comparison to its peers, Worthington's P/E ratio of 23.03 is higher than the industry average, which raises concerns about its valuation. For instance, a peer with a lower P/E ratio may indicate that Worthington is not justifiably priced relative to its earnings potential. Furthermore, despite a strong year-to-date return of 47.59% compared to the S&P 500's 2.44%, the high valuation metrics suggest that the stock may not sustain this performance in the long run.