Is Hanesbrands, Inc. overvalued or undervalued?

As of 7 August 2025, the valuation grade for Hanesbrands, Inc. has moved from risky to attractive, indicating a significant improvement in its investment appeal. The company appears undervalued, supported by a P/E ratio of 10, an EV to EBITDA of 7.49, and a PEG ratio of 0.11, all of which suggest that the stock is trading at a discount relative to its earnings growth potential. In comparison, Ralph Lauren Corp. has a much higher P/E ratio of 48.61, while Kontoor Brands, Inc. shows a more favorable EV to EBITDA of 14.31.
Despite the attractive valuation metrics, Hanesbrands has underperformed against the S&P 500, with a year-to-date return of -22.73% compared to the index's 12.22%. This stark contrast highlights the potential for recovery in the stock price as the market begins to recognize its value.