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 of 8.34. In comparison, peers such as Aspen Aerogels, Inc. have a P/E of 29.81, while Montauk Renewables, Inc. has a P/E of 50.38, suggesting that Alpha Pro Tech is positioned more favorably in terms of valuation relative to these companies.
Despite its fair valuation, Alpha Pro Tech has experienced significant underperformance compared to the S&P 500, with a year-to-date return of -12.67% versus the index's 13.30%. This trend continues over longer periods, with a 1-year return of -21.69% compared to 14.08% for the S&P 500, and a staggering 5-year return of -68.29% against 91.29% for the index. These figures reinforce the notion that while the company is fairly valued, its stock performance has not met market expectations.