Is Smith-Midland Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Smith-Midland Corp. moved from fair to attractive, indicating a more favorable assessment of its stock. The company appears to be undervalued, particularly when considering its strong performance metrics. Key ratios include a P/E ratio of 21, an EV to EBITDA of 12.73, and a PEG ratio of 0.02, all suggesting that the stock is priced attractively relative to its earnings growth potential.
In comparison to peers, Smith-Midland Corp. has a lower P/E ratio than Northwest Pipe Co. at 15.18, while Smart Sand, Inc. shows an exceptionally high P/E of 87.38, highlighting the relative attractiveness of Smith-Midland's valuation. Additionally, despite its recent underperformance on a year-to-date basis with a return of -15.16% compared to the S&P 500's 13.30%, the company has shown significant long-term growth with a 5-year return of 446.67% versus the S&P 500's 91.29%. This long-term performance reinforces the notion that Smith-Midland Corp. is currently undervalued.