Is Crocs, Inc. overvalued or undervalued?

As of 29 May 2025, the valuation grade for Crocs, Inc. has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios include a P/E ratio of 11, an EV to EBITDA of 10.62, and a PEG ratio of 0.37, which suggests that the stock is priced favorably relative to its growth potential.
In comparison to its peers, Crocs, Inc. stands out with a lower P/E ratio than On Holding AG, which is very expensive at 74.98, and Ralph Lauren Corp., which has a fair valuation at 45.59. Additionally, Crocs' EV to EBITDA ratio is more favorable than Skechers U.S.A., Inc. at 8.38, reinforcing its competitive positioning. Despite recent stock performance lagging behind the S&P 500, particularly over the past year, the strong financial metrics suggest that Crocs, Inc. presents a compelling investment opportunity.