Is Flexsteel Industries, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for Flexsteel Industries, Inc. moved from fair to very attractive, indicating a significant improvement in its perceived value. The company is currently 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, Ethan Allen Interiors, Inc. has a much higher P/E ratio of 28.41, while Bassett Furniture Industries, Inc. shows a P/E of 35.27, highlighting Flexsteel's relative undervaluation within the industry.
Despite the lack of return data, Flexsteel's valuation metrics suggest it is positioned favorably against its peers, particularly with a PEG ratio of 0.12, indicating strong growth potential relative to its price. The company's ROCE of 17.93% and ROE of 18.14% further reinforce its operational efficiency and profitability, making it an attractive investment opportunity in the current market.