Is Flexsteel Industries, Inc. overvalued or undervalued?

As of 13 February 2025, the valuation grade for Flexsteel Industries, Inc. has moved from expensive to attractive, indicating a shift in perception regarding its market value. The company is currently considered undervalued. Key ratios include a P/E ratio of 7, a Price to Book Value of 1.27, and an EV to EBITDA of 6.29, all suggesting that the stock is trading at a lower valuation compared to its earnings and asset base.
In comparison to its peers, Flexsteel's P/E ratio of 8.01 is significantly lower than La-Z-Boy, Inc. at 12.21 and Ethan Allen Interiors, Inc. at 22.70, which are both categorized as very attractive. Additionally, Flexsteel's PEG ratio of 0.12 further supports its undervaluation compared to the industry. Notably, while the stock has underperformed year-to-date with a return of -34.43%, it has shown resilience over longer periods, with a 5-year return of 199.16% compared to the S&P 500's 92.42%.