Is Deckers Outdoor Corp. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Deckers Outdoor Corp. moved from fair to attractive, indicating a more favorable assessment. The company appears to be undervalued, particularly when considering its P/E ratio of 17, which is significantly lower than peers like On Holding AG at 101.93 and Ralph Lauren Corp. at 48.61. Additionally, Deckers has an EV to EBITDA ratio of 11.56 and a remarkable ROCE of 174.17%, suggesting strong operational efficiency compared to its peers.
In the peer comparison, Skechers U.S.A., Inc. stands out with a P/E of 12.84, while VF Corp. is considered expensive at a P/E of 24.89. Despite recent underperformance, with a year-to-date return of -57.19% compared to the S&P 500's 15.47%, the long-term outlook remains positive, as evidenced by a 5-year return of 104.40%, which outpaces the S&P 500's 95.99%. Overall, Deckers Outdoor Corp. presents an attractive investment opportunity relative to its industry peers.