Is Commercial Metals Co. overvalued or undervalued?
2025-11-11 11:23:16As of 7 November 2025, the valuation grade for Commercial Metals Co. has moved from attractive to very expensive. This indicates that the company is currently overvalued. Key valuation ratios include a P/E ratio of 14, an EV to EBITDA of 8.04, and a Price to Book Value of 1.50. In comparison, peers such as Worthington Enterprises, Inc. have a significantly higher P/E ratio of 25.62, while Cleveland-Cliffs, Inc. shows a negative P/E, highlighting the mixed performance within the sector. Despite recent stock performance showing a 5-year return of 188.55% compared to the S&P 500's 91.73%, the company's current valuation metrics suggest it may not sustain such growth moving forward. The notable outperformance in the short term contrasts with the long-term underperformance over 10 years, where the S&P 500 outpaced Commercial Metals Co. by a considerable margin....
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2025-11-10 11:14:42As of 7 November 2025, the valuation grade for Commercial Metals Co. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company appears overvalued based on its current metrics, with a P/E ratio of 14, a Price to Book Value of 1.50, and an EV to EBITDA ratio of 8.04. In comparison, peers such as Worthington Enterprises, Inc. have a P/E ratio of 25.62 and an EV to EBITDA of 33.46, suggesting that Commercial Metals Co. is priced lower than some competitors but still reflects a high valuation in its current state. Additionally, while the company has shown strong returns, particularly over the 5-year period with a return of 204.67%, it has underperformed the S&P 500 over the past year with a return of -3.73% compared to the index's 12.65%. This performance, alongside the recent grade change, reinforces the conclusion that Commercial Metals Co. is currently overvalued....
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2025-11-09 11:08:13As of 7 November 2025, the valuation grade for Commercial Metals Co. has moved from attractive to very expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on key ratios, including a P/E ratio of 14, which is significantly lower than the peer average of 18.46 for similar companies like Worthington Enterprises, Inc., which has a P/E of 25.62. Additionally, the EV to EBITDA ratio stands at 8.04, while peers like Cleveland-Cliffs, Inc. exhibit a negative P/E, further highlighting the relative valuation concerns. In terms of returns, Commercial Metals Co. has shown a year-to-date return of 18.49%, outperforming the S&P 500's 14.40%, but has lagged over the one-year period with a return of -3.73% compared to the S&P 500's 12.65%. Given these factors, the company is assessed as overvalued in the current market context....
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