Is Tennant Co. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Tennant Co. has moved from expensive to fair. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 16, while the EV to EBITDA ratio is 8.68, and the Price to Book Value is 2.23.
In comparison to its peers, Tennant Co. has a lower P/E ratio than Modine Manufacturing Co. at 36.40 and a significantly lower EV to EBITDA ratio than Enpro, Inc. at 19.44, indicating a more attractive valuation relative to these competitors. Despite recent underperformance, with a year-to-date return of -9.32% compared to the S&P 500's 14.40%, the long-term outlook remains positive with a 3-year return of 11.53%, suggesting potential for recovery.