Is Northern Technologies International Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Northern Technologies International Corp. has moved from attractive to very expensive. The company is considered overvalued based on its current financial metrics. Key ratios include a P/E ratio of 18, an EV to EBITDA of -36.54, and a Price to Book Value of 1.00. In comparison, peers such as Aspen Aerogels, Inc. have a P/E of 29.81, and Montauk Renewables, Inc. has a P/E of 50.38, indicating that Northern Technologies is trading at a lower valuation relative to its peers.
The stock has significantly underperformed against the S&P 500, with a year-to-date return of -45.00% compared to the S&P 500's 13.30%. This stark contrast reinforces the notion that Northern Technologies International Corp. is overvalued in the current market environment.