Is Flexsteel Industries, Inc. overvalued or undervalued?

As of 31 July 2025, the valuation grade for Flexsteel Industries, Inc. has moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued, supported by a P/E ratio of 7, a Price to Book Value of 1.27, and an EV to EBITDA ratio of 6.29. In comparison to peers, Ethan Allen Interiors, Inc. has a significantly higher P/E of 28.41, while Arhaus, Inc. shows an attractive valuation with a P/E of 22.58, highlighting Flexsteel's relative undervaluation in the industry.
Flexsteel's recent stock performance has been strong, with a 1-month return of 41.56%, significantly outpacing the S&P 500's return of 2.33% during the same period. This performance, combined with its attractive valuation metrics, reinforces the conclusion that Flexsteel Industries, Inc. is currently undervalued.