Is Perma-Pipe International Holdings, Inc. overvalued or undervalued?

As of 4 August 2025, the valuation grade for Perma-Pipe International Holdings, Inc. has moved from attractive to fair, indicating a shift towards a more neutral assessment. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 9, a Price to Book Value of 1.62, and an EV to EBITDA of 4.75. In comparison, Graham Corp. has a significantly higher P/E of 41.09, while Natural Gas Services Group, Inc. shows a P/E of 17.57, highlighting that Perma-Pipe is positioned lower in terms of valuation among its peers.
Despite the recent downgrade in valuation grade, Perma-Pipe has demonstrated strong performance with a year-to-date return of 52.71%, significantly outperforming the S&P 500's return of 12.22% over the same period. This performance, alongside a robust ROCE of 29.42% and ROE of 18.15%, suggests that while the company's valuation may be fair, its operational efficiency remains commendable.