Is National Research Corp. overvalued or undervalued?

As of 8 September 2025, the valuation grade for National Research Corp. has moved from expensive to very expensive, indicating a significant concern regarding its valuation. The company appears to be overvalued, especially when considering its P/E ratio of 17, which is notably lower than its peer Psychemedics Corp. at 24.89, and its EV to EBITDA ratio of 11.75, which is higher than Psychemedics' 14.32. Additionally, the Price to Book Value stands at 14.27, suggesting that the market is pricing the company at a substantial premium relative to its book value.
In terms of performance, National Research Corp. has underperformed against the S&P 500, with a year-to-date return of -9.92% compared to the index's 12.22%, and a staggering -68.24% return over the past five years versus the S&P 500's 96.61%. This stark contrast in returns further reinforces the notion that the stock is overvalued in the current market context.