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 overvalued based on its current metrics. The P/E ratio stands at 18, while its peers such as Aspen Aerogels, Inc. and Montauk Renewables, Inc. have P/E ratios of 29.81 and 50.38, respectively, indicating a significant premium for those companies. Additionally, the EV to EBITDA ratio is notably negative at -36.54, further highlighting the company's valuation challenges.
In comparison to the S&P 500, Northern Technologies has underperformed significantly, with a year-to-date return of -45.00% versus the index's 13.30%. This trend continues over multiple periods, with a 1-year return of -43.14% compared to the S&P 500's 14.08%, suggesting that the market is not favorably viewing the company's prospects. Overall, these factors contribute to the conclusion that Northern Technologies International Corp. is overvalued in the current market environment.