Is Envela Corp. overvalued or undervalued?

As of 7 May 2025, Envela Corp. has moved from a fair to attractive valuation grade, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a P/E ratio of 20, an EV to EBITDA ratio of 13.26, and a ROCE of 18.15%. In comparison to peers, Envela Corp. has a P/E ratio of 19.90, while Build-A-Bear Workshop, Inc. stands at a more attractive 12.51, highlighting a significant valuation gap.
Despite recent stock performance showing a decline of 18.52% year-to-date compared to a 2.44% increase in the S&P 500, the underlying metrics suggest that Envela Corp. is positioned well within its industry. The EV to Sales ratio of 0.74 further supports the argument for undervaluation, especially when considering the overall market environment.