Is Arhaus, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Arhaus, Inc. has moved from expensive to very expensive. This indicates that the company is overvalued. Key ratios include a P/E ratio of 21, a Price to Book Value of 3.54, and an EV to EBITDA of 6.97. In comparison, Ethan Allen Interiors, Inc. has a higher P/E ratio of 28.41, while The Lovesac Co. shows a P/E of 20.70, both suggesting that Arhaus is trading at a premium relative to some peers.
In terms of recent performance, Arhaus has underperformed against the S&P 500 over the past year, returning 15.32% compared to the index's 19.89%. This underperformance, combined with the high valuation ratios, reinforces the conclusion that Arhaus, Inc. is overvalued.