Is Cricut, Inc. overvalued or undervalued?

As of 6 May 2025, the valuation grade for Cricut, Inc. has moved from very attractive to attractive, indicating a shift in market perception. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 20, an EV to EBITDA of 9.34, and a ROCE of 58.44%.
In comparison to its peers, Cricut's P/E ratio of 20.68 is lower than Distribution Solutions Group, Inc. at 42.30, but higher than DXP Enterprises, Inc. at 16.05, suggesting it is positioned competitively within its industry. Notably, Cricut has outperformed the S&P 500 in the past year with a return of 12.29% compared to the index's 10.26%, reinforcing its attractiveness as an investment despite the recent grade change.