Is Betterware de México SAB de CV overvalued or undervalued?

As of 26 October 2023, Betterware de México SAB de CV has moved from a fair to a very attractive valuation grade. The company is currently undervalued, with a P/E ratio of 13, which is significantly lower than its peers such as MarineMax, Inc. at 21.85 and Monro, Inc. at 24.35. Additionally, Betterware's EV to EBITDA stands at 4.42, compared to MarineMax's 10.33, indicating a more favorable valuation relative to its earnings potential.
The company's financial performance is highlighted by a robust ROCE of 34.94% and an impressive ROE of 45.66%, suggesting strong profitability and efficient use of equity. Despite recent stock performance trailing behind the S&P 500, with a year-to-date decline of 26.92% compared to the index's 2.44% gain, the valuation metrics indicate that Betterware de México presents a compelling investment opportunity at its current price of 8.17.