Is Fox Factory Holding Corp. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Fox Factory Holding Corp. has moved from expensive to risky, indicating a deterioration in its perceived value. The company is currently overvalued, as suggested by its high P/E ratio of 42, compared to peers like Autoliv, Inc. with a P/E of 18.06, and Allison Transmission Holdings, Inc. at 9.98. Additionally, Fox Factory's EV to EBITDA stands at 11.39, which is significantly higher than the industry average, further supporting the overvaluation assertion.
In terms of return performance, Fox Factory has underperformed relative to the S&P 500 across multiple periods, with a staggering 10-year return of -64.34% compared to the S&P 500's 231.64%. This stark contrast reinforces the notion that the stock is not only overvalued but also struggling to deliver returns in line with broader market performance.