Is Smith-Midland Corp. overvalued or undervalued?

As of 19 August 2025, the valuation grade for Smith-Midland Corp. has moved from fair to attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued, supported by its P/E ratio of 21, which is higher than the peer average of 18.65, and a PEG ratio of 0.02, suggesting strong growth potential relative to its price. Additionally, the EV to EBITDA ratio stands at 12.73, which is competitive compared to peers like Northwest Pipe Co. with an EV to EBITDA of 8.61. In terms of performance, Smith-Midland Corp. has outperformed the S&P 500 over the 3-year and 5-year periods, with returns of 74.35% and 605.38%, respectively, compared to 70.41% and 96.61% for the index. This strong historical performance, coupled with robust financial metrics such as a ROCE of 25.18% and an ROE of 18.39%, reinforces the attractiveness of the stock in the current market context.