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, indicating a shift in its perceived value. The company appears to be fairly valued at this time, with a P/E ratio of 9, an EV to EBITDA ratio of 4.75, and a Price to Book Value of 1.62. In comparison to peers, Graham Corp. has a significantly higher P/E ratio of 41.09, while Natural Gas Services Group, Inc. shows a P/E of 17.57, suggesting that Perma-Pipe is trading at a lower valuation relative to some competitors.
Despite the recent downgrade in valuation, Perma-Pipe has demonstrated strong performance, with a year-to-date return of 65.22% compared to the S&P 500's 13.30%, and an impressive 1-year return of 86.70% against the S&P 500's 14.08%. This performance may indicate that the market has recognized its growth potential, even as the valuation grade reflects a more cautious outlook.