Is Cricut, Inc. overvalued or undervalued?

As of 5 August 2025, the valuation grade for Cricut, Inc. has moved from attractive to very attractive, indicating a favorable shift in its valuation outlook. The company appears to be undervalued based on key metrics, including a P/E ratio of 20, an EV to EBITDA of 9.34, and a robust ROCE of 58.44%. In comparison to peers, Cricut's P/E ratio of 20 is lower than that of BlueLinx Holdings, Inc., which has a P/E of 25.45, while AerSale Corp. shows a much higher P/E of 63.13.
Cricut's recent stock performance has outpaced the S&P 500, with a year-to-date return of 19.12% compared to the S&P 500's 12.22%, although it has underperformed over the three-year period with a return of -23.54% versus the S&P 500's 70.41%. Overall, these factors suggest that Cricut, Inc. is currently undervalued relative to its peers and market performance.