Is Northwest Pipe Co. overvalued or undervalued?

As of 13 February 2025, the valuation grade for Northwest Pipe Co. has moved from expensive to fair, indicating a shift in its market perception. The company is currently fairly valued. Key ratios include a P/E ratio of 12, an EV to EBITDA of 6.71, and a PEG ratio of 0.31, suggesting that the stock may be undervalued relative to its growth prospects.
In comparison to peers, Northwest Pipe Co. has a lower P/E ratio than Smith-Midland Corp., which stands at 20.41, indicating that Northwest may be undervalued relative to its industry. Additionally, its EV to EBITDA ratio is more favorable than that of Smith-Midland Corp. at 12.28. Despite a challenging year-to-date performance of -17.30% compared to the S&P 500's 2.44%, the company's recent 1-year return of 19.99% suggests potential for recovery and growth.