Is Franklin Covey Co. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Franklin Covey Co. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time, with a P/E ratio of 30, a Price to Book Value of 8.06, and an EV to EBITDA of 13.14. In comparison to peers, Franklin Covey Co. has a P/E ratio that is higher than SP Plus Corp. at 25.27, but lower than the significantly overvalued The Hackett Group, Inc. at 69.15.
Despite the fair valuation, Franklin Covey Co. has experienced poor stock performance, with a year-to-date return of -53.03%, significantly underperforming the S&P 500's return of 13.30% during the same period. This stark contrast in returns may suggest that the market has not fully recognized the company's potential despite its strong ROCE of 82.85% and ROE of 27.21%.