Is Deckers Outdoor Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Deckers Outdoor Corp. has 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 ratio of 11.56, and a remarkable ROCE of 174.17%. In comparison, a peer company has a P/E ratio of 17.56 and an EV to EBITDA of 12.21, suggesting that Deckers is competitively priced within its industry.
Despite recent challenges reflected in its stock performance, where it has underperformed the S&P 500 over the past year with a return of -37.73% compared to the index's 14.08%, the long-term outlook remains positive, as evidenced by a 5-year return of 128.32% versus the S&P 500's 91.29%. Overall, the current valuation metrics support the conclusion that Deckers Outdoor Corp. is undervalued relative to its peers and historical performance.