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 more favorable outlook. The company appears undervalued, supported by a P/E ratio of 10, an EV to EBITDA of 6.01, and a Price to Book Value of 1.30. In comparison, a peer like Worthington Steel has a higher P/E of 12.88 and a lower EV to EBITDA of 7.24, suggesting that Worthington Steel may offer better value relative to its competitors.
Despite the attractive valuation, Worthington Steel has faced challenges, as evidenced by its recent stock performance, which shows a 1-week return of 4.04% compared to the S&P 500's 1.70%, but a disappointing 1-year return of -14.85% against the S&P 500's 14.08%. This discrepancy highlights the potential for recovery in the stock, reinforcing its undervalued status.