Is Worthington Steel, Inc. overvalued or undervalued?

As of 17 October 2025, Worthington Steel, Inc. moved from fair to attractive in its valuation grade, indicating a positive shift in its perceived value. The company appears undervalued, particularly when considering its P/E ratio of 10, which is lower than the peer average of 12.88, and its EV to EBITDA ratio of 6.01, which is also favorable compared to the industry benchmark. Additionally, the Price to Book Value stands at 1.30, suggesting that the stock is trading at a reasonable valuation relative to its book value.
In comparison to its peers, Worthington Steel's valuation metrics reflect a competitive position within the ferrous metals industry, with its EV to EBIT ratio of 8.41 being more attractive than the peer average of 7.24. Despite recent stock performance showing a decline of 14.85% over the past year compared to a 14.08% increase in the S&P 500, the company's strong ROCE of 15.29% and ROE of 12.45% indicate solid operational efficiency, reinforcing the notion that it is undervalued in the current market.