Is Bassett Furniture Industries, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for Bassett Furniture Industries, Inc. moved from fair to very attractive, indicating a significant positive shift in its valuation outlook. The company appears undervalued, particularly when considering its P/E ratio of 141, which is notably high compared to its peers, such as Ethan Allen Interiors, Inc. with a P/E of 28.41, and Arhaus, Inc. at 22.58. Additionally, Bassett's price-to-book value stands at 0.85, suggesting that the stock is trading below its book value, and its EV to EBITDA ratio of 16.60 further supports the notion of undervaluation relative to its operational earnings.
In comparison to its peers, Bassett's PEG ratio of 0.98 indicates that it may be undervalued in terms of its growth prospects, especially when contrasted with Ethan Allen's PEG of 0.00. While the stock has not provided recent return data for a direct comparison to the S&P 500, the overall valuation metrics suggest that Bassett Furniture Industries, Inc. is positioned favorably in the market, reinforcing its attractiveness as an investment opportunity.