Is Helen of Troy Ltd. overvalued or undervalued?

As of 13 February 2025, the valuation grade for Helen of Troy Ltd. has moved from very expensive to attractive, indicating a significant shift in its perceived value. The company is currently considered undervalued, with a P/E ratio of 3, a price-to-book value of 0.38, and an EV to EBITDA of 5.87. These ratios suggest that the stock is trading at a discount compared to its earnings and asset value.
In comparison to its peers, Helen of Troy Ltd. stands out with a notably lower P/E ratio than HNI Corp., which has a P/E of 14.68, and a more favorable PEG ratio of 0.70 compared to MasterBrand, Inc. at 0.00. Despite recent stock performance lagging behind the S&P 500, particularly with a year-to-date return of -54.12% versus the S&P 500's 2.44%, the current valuation metrics indicate that Helen of Troy Ltd. presents an attractive investment opportunity.