Is Arhaus, Inc. overvalued or undervalued?

Jun 25 2025 09:28 AM IST
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As of February 13, 2025, Arhaus, Inc. is considered undervalued with attractive valuation metrics, including a P/E ratio of 21 and strong financial performance indicators like a ROCE of 40.44%, despite a recent stock decline of -49.39%.
As of 13 February 2025, Arhaus, Inc. has moved from a fair to an attractive valuation grade. The company is currently considered undervalued, with a P/E ratio of 21, a Price to Book Value of 3.54, and an EV to EBITDA of 6.97. In comparison to its peers, HNI Corp. has a P/E of 14.68 and an EV to EBITDA of 7.97, while MasterBrand, Inc. shows a more attractive P/E of 10.36 and an EV to EBITDA of 6.84.

Despite a recent decline in stock performance, with a 1-year return of -49.39% compared to the S&P 500's 10.26%, Arhaus's strong ROCE of 40.44% and ROE of 16.72% suggest that the company has solid fundamentals. This combination of attractive valuation metrics and strong financial performance indicates that Arhaus, Inc. is currently undervalued in the market.
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