Is Deckers Outdoor Corp. overvalued or undervalued?

As of 23 May 2025, the valuation grade for Deckers Outdoor Corp. has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued based on its current metrics, with a P/E ratio of 17, which is lower than the peer average of 15.87 for comparable companies like Deckers and significantly lower than NIKE, Inc. at 19.77. Additionally, Deckers boasts a remarkable ROCE of 174.17% and an ROE of 38.44%, suggesting strong profitability relative to its equity and capital employed.
In comparison to its peers, Deckers Outdoor Corp. shows a favorable EV to EBITDA ratio of 11.56, while NIKE's ratio stands at 15.82, reinforcing the notion that Deckers is trading at a discount. Despite recent stock performance trailing the S&P 500, particularly with a year-to-date decline of 50.54% compared to the index's 2.44% gain, the underlying financial ratios and peer comparisons suggest that Deckers Outdoor Corp. is currently undervalued and presents a compelling investment opportunity.