Is FIGS, Inc. overvalued or undervalued?

As of 25 March 2025, the valuation grade for FIGS, Inc. has moved from very expensive to fair. The company is currently fairly valued. Key ratios include a P/E ratio of 699, an EV to EBITDA of 62.16, and a Price to Book Value of 2.17. In comparison, peers such as Hanesbrands, Inc. have a P/E of 8.93 and G-III Apparel Group Ltd. boasts a more attractive P/E of 4.74, highlighting FIGS, Inc.'s relatively high valuation metrics.
Despite the high P/E ratio, FIGS, Inc. shows a return on equity (ROE) of only 0.31% and a return on capital employed (ROCE) of 1.14%, indicating challenges in generating returns relative to its valuation. Over the past year, FIGS, Inc. has outperformed the S&P 500 with a return of 20.59% compared to the index's 10.26%, which may suggest some investor optimism, but the high valuation ratios indicate caution moving forward.