Is Hanesbrands, Inc. overvalued or undervalued?
As of August 8, 2024, Hanesbrands, Inc. is considered overvalued and risky, with a P/E ratio of 10 and a significant year-to-date stock decline of 45.09%, compared to a 2.44% increase in the S&P 500, indicating a less favorable investment outlook relative to peers like Oxford Industries, Inc. with a P/E of 7.84.
As of 8 August 2024, the valuation grade for Hanesbrands, Inc. has moved from attractive to risky, indicating a shift in investor sentiment. The company is currently considered overvalued. Key ratios reveal a P/E ratio of 10, an EV to EBITDA of 7.49, and an ROE of 418.16%, which, despite appearing strong, are overshadowed by the overall risk assessment and the company's recent performance.In comparison to peers, Oxford Industries, Inc. has a P/E of 7.84 and an EV to EBITDA of 5.30, suggesting that Hanesbrands is priced higher relative to its earnings potential. The significant drop in stock performance, with a year-to-date decline of 45.09% compared to a 2.44% increase in the S&P 500, further reinforces the notion that the stock is overvalued at its current price of 4.47.
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