Is Northern Technologies International Corp. overvalued or undervalued?

As of 23 May 2025, the valuation grade for Northern Technologies International Corp. has moved from expensive to fair. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 18, a Price to Book Value of 1.00, and an EV to Sales ratio of 0.87, which indicates a reasonable valuation compared to its peers.
In comparison to its peers, Northern Technologies has a P/E ratio of 18, while UFP Technologies, Inc. stands at 27.51, and Aspen Aerogels, Inc. at 12.63. The EV to EBITDA ratio for Northern Technologies is -36.54, contrasting sharply with UFP Technologies’ 18.48, suggesting that Northern Technologies is managing its earnings less effectively than some competitors. Despite recent underperformance relative to the S&P 500, where the company has seen a year-to-date decline of 45.14% versus a 2.44% gain for the index, the current valuation reflects a fair assessment of its financial position.