Is Worthington Steel, Inc. overvalued or undervalued?

Oct 20 2025 12:30 PM IST
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As of October 17, 2025, Worthington Steel, Inc. is considered undervalued with attractive financial ratios, including a P/E of 10 and an EV to EBITDA of 6.01, despite experiencing a negative 1-year return of -14.85%.
As of 17 October 2025, Worthington Steel, Inc. moved from fair to attractive in its valuation grade, indicating a shift towards being undervalued. The company appears attractive with a P/E ratio of 10, an EV to EBITDA of 6.01, and a Price to Book Value of 1.30. In comparison, its peer, which has a P/E of 12.88 and an EV to EBITDA of 7.24, suggests that Worthington Steel is trading at a discount relative to its industry peers.

Despite the attractive valuation, Worthington Steel has experienced negative returns, with a 1-year return of -14.85% compared to the S&P 500's return of 14.08%, highlighting the company's recent struggles in the market. Overall, the combination of a favorable valuation grade and competitive ratios suggests that Worthington Steel is currently undervalued.
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