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 positive shift in its perceived value. The company appears to be undervalued based on several key ratios, including a P/E ratio of 21, an EV to EBITDA of 12.73, and a PEG ratio of 0.02, which suggests strong growth potential relative to its price. In comparison, peers such as Northwest Pipe Co. have a P/E of 15.18 and Smart Sand, Inc. has a significantly higher P/E of 87.38, highlighting Smith-Midland's relative attractiveness in the market.
Additionally, Smith-Midland's recent stock performance shows a 1-year return of 15.00%, slightly trailing the S&P 500's 14.08%, but it has significantly outperformed the index over the 5-year period with a return of 446.67% compared to the S&P 500's 91.29%. This long-term performance, combined with its attractive valuation metrics, reinforces the conclusion that Smith-Midland Corp. is currently undervalued.