Is Hanesbrands, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Hanesbrands, Inc. moved from very expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued, particularly when considering its P/E ratio of 10, which is significantly lower than the industry average, and a PEG ratio of 0.11, suggesting strong growth potential relative to its price. Additionally, the EV to EBITDA ratio stands at 7.49, further supporting the notion of undervaluation.
In comparison to peers, Ralph Lauren Corp. has a much higher P/E of 48.61, while Kontoor Brands, Inc. shows a more favorable EV to EBITDA of 14.31, yet Hanesbrands maintains a competitive position with its attractive valuation metrics. Despite recent stock performance showing a decline of 15.36% year-to-date compared to the S&P 500's gain of 13.30%, the current valuation ratios suggest that Hanesbrands may present a compelling investment opportunity moving forward.