Is Amer Sports, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Amer Sports, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 86, significantly higher than the peer average of approximately 79.86. Additionally, the Price to Book Value stands at 3.98, and the EV to EBITDA ratio is 24.47, both suggesting that the stock may be priced above its intrinsic value compared to its peers.
In comparison to its industry, Amer Sports' ROE of 4.63% and ROCE of 10.02% are relatively low, which may raise concerns about its profitability and efficiency. Notably, the company's recent stock performance has outpaced the S&P 500, with a year-to-date return of 35.48% compared to the index's 12.22%, and an impressive one-year return of 155.08% against 17.14% for the S&P 500. This strong performance, however, does not negate the overvaluation indicated by the ratios.