Is Smith-Midland Corp. overvalued or undervalued?

As of 14 November 2025, the valuation grade for Smith-Midland Corp. moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued based on its current metrics, as evidenced by a P/E ratio of 21, a Price to Book Value of 3.89, and an EV to EBITDA of 12.73. In comparison, peers such as Northwest Pipe Co. have a P/E of 15.18 and an EV to EBITDA of 8.61, suggesting that Smith-Midland may be trading at a premium relative to its industry.
Despite the recent downgrade in valuation, Smith-Midland has shown strong performance over the long term, with a 5-year return of 362.20%, significantly outpacing the S&P 500's 87.83% over the same period. However, its year-to-date return of -14.75% contrasts sharply with the S&P 500's 14.49%, indicating recent struggles. Overall, while the company is currently fairly valued, its strong historical performance suggests potential for future growth.