Is National Research Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for National Research Corp. moved from very expensive to expensive, indicating a shift in perception regarding its valuation. The company appears to be overvalued based on its current metrics, with a P/E ratio of 17, a Price to Book Value of 14.27, and an EV to EBITDA of 11.75. In comparison, its peer Psychemedics Corp. has a P/E ratio of -8.09, highlighting a significant disparity in valuation between the two companies.
Given the current valuation ratios and the peer comparison, National Research Corp. is positioned at a higher valuation than its peers, suggesting it may not be an attractive investment at this time. While the company has a strong ROE of 82.18% and a solid ROCE of 38.17%, these figures do not sufficiently justify its expensive valuation. Additionally, the absence of return data makes it challenging to assess its performance against the S&P 500, but the overall valuation suggests caution for potential investors.