Is Flexible Solutions International, Inc. overvalued or undervalued?

As of 24 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 overvalued based on its current metrics, with a P/E ratio of 16, a Price to Book Value of 1.42, and an EV to EBITDA of 8.37. In comparison, peers such as Arq, Inc. and Fuel Tech, Inc. exhibit higher risk profiles with P/E ratios of -343.94 and -28.46, respectively, suggesting that Flexible Solutions may not justify its valuation in the context of its industry.
Despite the overvaluation, Flexible Solutions has shown impressive returns, with a year-to-date return of 168.70% compared to the S&P 500's 15.47%, and a three-year return of 212.90% versus the S&P 500's 78.85%. This performance may have contributed to its elevated valuation, but the current metrics suggest caution for potential investors.