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

As of 17 October 2025, the valuation grade for Perma-Pipe International Holdings, Inc. has moved from attractive to fair. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 9, significantly lower than the peer average of approximately 14.88, while the EV to EBITDA ratio is 4.75, also below the peer average of 8.87. Additionally, the PEG ratio is quite high at 8.93, indicating potential overvaluation in terms of growth expectations.
In comparison to its peers, Graham Corp. has a P/E of 41.09 and Natural Gas Services Group, Inc. has a P/E of 17.57, both of which highlight that Perma-Pipe's valuation is more attractive relative to these companies. Despite the fair valuation, Perma-Pipe has delivered impressive returns, with a year-to-date return of 65.22% compared to the S&P 500's 13.30%, and a remarkable 3-year return of 161.65% versus the S&P 500's 81.19%.