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 based on the current metrics. 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 of 28.41, while The Lovesac Co. shows a lower P/E of 20.70, reinforcing the perception of Arhaus as overvalued within its industry.
In terms of recent performance, Arhaus has underperformed against the S&P 500, with a year-to-date return of 3.19% compared to the S&P's 16.30%. This trend of underperformance, along with its elevated valuation ratios, suggests that investors may want to exercise caution before considering an investment in Arhaus, Inc.