Is Flexsteel Industries, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for Flexsteel Industries, Inc. has moved from fair to very attractive, indicating a strong improvement in its valuation outlook. Based on the current metrics, the company appears undervalued, with a P/E ratio of 7, a Price to Book Value of 1.27, and an EV to EBITDA of 6.29. In comparison, Ethan Allen Interiors, Inc. has a significantly higher P/E of 28.41, while Bassett Furniture Industries, Inc. shows a P/E of 35.27, highlighting Flexsteel's relative undervaluation in the industry.
Despite a challenging year-to-date return of -31.10% compared to the S&P 500's 12.26%, Flexsteel has demonstrated strong long-term performance, with a 3-year return of 145.51% versus the S&P 500's 67.17%. This suggests that while recent performance has been weak, the company's long-term potential may not be fully recognized in its current valuation.