Is Arhaus, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for Arhaus, Inc. has moved from very expensive to attractive, indicating a shift towards a more favorable assessment. The company appears to be undervalued, particularly when considering its P/E ratio of 21, which is lower than the peer average of 22.58 for Arhaus and significantly lower than Ethan Allen Interiors, Inc. at 28.41. Additionally, Arhaus has an EV to EBITDA ratio of 6.97, which is more appealing compared to the industry benchmarks.
In terms of peer comparison, Arhaus, Inc. is positioned against Ethan Allen Interiors, Inc. with a P/E of 28.41 and The Lovesac Co. at 20.70, highlighting that Arhaus is competitively priced within its sector. Notably, while Arhaus has experienced a 3.88% return over the past week, the S&P 500 has declined by 1.95%, suggesting that Arhaus is outperforming the broader market in the short term. Overall, the valuation metrics and peer comparisons support the conclusion that Arhaus, Inc. is currently undervalued.