Is Coty, Inc. overvalued or undervalued?

As of 6 May 2025, the valuation grade for Coty, Inc. has moved from expensive to risky, indicating a shift in perception regarding its market position. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 24, which is higher than the peer average of 25.97 for Coty, Inc., and a Price to Book Value of 1.35. Additionally, the EV to EBITDA ratio stands at 8.71, which is lower than the industry average, suggesting that while the company may have some value, it is not enough to justify its current price.
In comparison to peers, Reynolds Consumer Products, Inc. has a more favorable EV to EBITDA of 9.99 and a lower P/E ratio of 15.06, while Inter Parfums, Inc. is considered attractive with a P/E of 23.23. The recent stock performance shows that Coty, Inc. has underperformed significantly against the S&P 500, with a one-year return of -53.89% compared to the index's 17.14%, reinforcing the notion that the stock is currently overvalued.