Is Deckers Outdoor Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Deckers Outdoor Corp. moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued based on its current metrics, with a P/E ratio of 17, an EV to EBITDA of 11.56, and a remarkable ROE of 38.44%. In comparison, a peer company has a P/E of 17.56 and an EV to EBITDA of 12.21, suggesting that Deckers is competitively priced within its industry.
Despite recent struggles reflected in its stock performance, where it has underperformed the S&P 500 with a YTD return of -50.85% compared to the index's 13.30%, the long-term outlook remains promising with a 5-year return of 128.32% versus the S&P 500's 91.29%. This discrepancy highlights the potential for recovery and growth, reinforcing the notion that Deckers Outdoor Corp. is currently undervalued.