Is Flexible Solutions International, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Flexible Solutions International, Inc. has moved from fair to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 16, which is notably lower than its peer Arq, Inc. at 30.09 and Fuel Tech, Inc. at -28.46. Additionally, the EV to EBITDA ratio stands at 8.37, which is also less favorable compared to the industry averages.
In terms of performance, Flexible Solutions has shown impressive returns year-to-date at 160.39%, significantly outperforming the S&P 500's 14.18% during the same period. However, the company's recent stock performance has been declining, with a 1-month return of -5.15% compared to the S&P 500's 4.15%. Overall, the combination of high valuation ratios and recent stock performance suggests that Flexible Solutions International, Inc. is currently overvalued.