Is Harley-Davidson, Inc. overvalued or undervalued?

As of 26 October 2023, Harley-Davidson, Inc. has moved from a very attractive to an attractive valuation grade. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 10, while the EV to EBITDA ratio is 19.36, and the Price to Book Value is 1.06. In comparison, its peer Oshkosh Corp. has a P/E of 12.00 and an EV to EBITDA of 7.74, indicating that Harley-Davidson is trading at a premium relative to some peers.
Despite the attractive dividend yield of 221.20%, the company's ROCE of 3.36% and ROE of 10.94% suggest limited profitability. Additionally, the stock has underperformed against the S&P 500 over various time frames, with a year-to-date return of -21.87% compared to the index's 2.44%. Overall, the combination of these ratios and peer comparisons leads to the conclusion that Harley-Davidson is overvalued at its current price of 23.54.