Is Bassett Furniture Industries, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Bassett Furniture Industries, Inc. has moved from very attractive to fair. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 141, significantly higher than the industry average, while the Price to Book Value is 0.85, indicating a discount relative to its book value. Additionally, the EV to EBITDA ratio is 16.60, which suggests a premium valuation compared to peers.
In comparison to its peers, Ethan Allen Interiors, Inc. has a P/E of 28.41 and an EV to EBITDA of 17.96, indicating it is relatively more attractive, while Arhaus, Inc. is considered very expensive with a P/E of 22.58 and an EV to EBITDA of 8.19. Furthermore, Bassett's recent stock performance shows a decline over the past year, returning 7.10% compared to the S&P 500's 14.08%, reinforcing the notion that the stock may be overvalued.