Is Alpha Pro Tech Ltd. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Alpha Pro Tech Ltd. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 12, a Price to Book Value of 0.80, and an EV to EBITDA ratio of 8.34. In comparison, peers such as Aspen Aerogels, Inc. have a much higher P/E ratio of 29.81, while Montauk Renewables, Inc. shows a fair valuation with a P/E of 50.38, suggesting that Alpha Pro Tech is positioned more conservatively within its industry.
The stock has underperformed relative to the S&P 500, with a year-to-date return of -12.67% compared to the index's 13.30%, and a one-year return of -21.69% against the S&P 500's 14.08%. This underperformance reinforces the notion that Alpha Pro Tech may be fairly valued but lacks the momentum seen in broader market trends.