Is Build-A-Bear Workshop, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Build-A-Bear Workshop, Inc. has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 11, a PEG ratio of 0.59, and an EV to EBITDA ratio of 7.15, all of which suggest that the stock is trading at a discount compared to its growth potential.
In comparison to its peers, Sonic Automotive, Inc. has a P/E ratio of 17.92, while Hibbett, Inc. has a P/E of 10.48, highlighting that Build-A-Bear Workshop is positioned favorably within its industry. Notably, the company has delivered impressive returns, with a 1-year stock return of 131.18% compared to the S&P 500's 17.14%, reinforcing the attractiveness of its current valuation.