Is Worthington Steel, Inc. overvalued or undervalued?

As of 7 July 2025, Worthington Steel, Inc. has moved from expensive to attractive, indicating a shift in its valuation grade. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 10, an EV to EBITDA of 6.01, and a Price to Book Value of 1.30, which suggest that the stock is trading at a discount compared to its earnings and asset value.
In comparison to its peer, Worthington Steel's P/E ratio of 10 is lower than the peer average of 12.88, while its EV to EBITDA of 6.01 is more favorable than the peer average of 7.24. This positions Worthington Steel as a potentially attractive investment within the ferrous metals industry. Despite a recent one-year return of -2.21%, which underperformed the S&P 500's 17.14% return, the company's valuation metrics indicate that it may present a buying opportunity for investors.