Is NL Industries, Inc. overvalued or undervalued?

As of 23 May 2025, the valuation grade for NL Industries, Inc. has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently undervalued, with a P/E ratio of 5, a Price to Book Value of 0.86, and an EV to EBITDA ratio of 5.81. These metrics suggest that the stock is trading at a discount compared to its earnings and asset value.
In comparison to its peers, NL Industries, Inc. stands out with a notably low P/E ratio of 4.72, while CompX International, Inc. has a P/E of 16.45, and Insteel Industries, Inc. is considered expensive with a P/E of 28.50. Additionally, NL's PEG ratio of 0.02 further emphasizes its undervaluation relative to growth expectations. Despite recent underperformance against the S&P 500, with a year-to-date return of -21.49% compared to the S&P's 2.44%, the underlying fundamentals suggest that NL Industries, Inc. presents a compelling investment opportunity.