Is National Research Corp. overvalued or undervalued?

As of 10 June 2025, the valuation grade for National Research Corp. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a P/E ratio of 17, which is notably higher than its peer Psychemedics Corp., which has a P/E of -8.20. Additionally, the EV to EBITDA ratio stands at 11.75, while the industry average appears to be lower, suggesting that National Research Corp. is trading at a premium relative to its peers.
In terms of key financial ratios, the company shows a Price to Book Value of 14.27 and a ROE of 82.18%, which, while impressive, may not justify its current valuation given the overall market performance. The recent stock performance has been lackluster, with a 1-year return of -32.99% compared to a 10.26% return for the S&P 500, further reinforcing the notion that the stock is overvalued in the current market context.