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. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 141, a Price to Book Value of 0.85, and an EV to EBITDA of 16.60, which are significantly higher than those of its peers like Ethan Allen Interiors, Inc. with a P/E of 28.41 and Arhaus, Inc. at 22.58.
In comparison to the S&P 500, Bassett has underperformed over multiple periods, with a year-to-date return of 10.20% compared to the S&P 500's 13.30%, and a three-year return of -13.26% versus the S&P 500's impressive 81.19%. This underperformance reinforces the notion that Bassett may be overvalued in the current market environment.