Is Helen of Troy Ltd. overvalued or undervalued?

As of 10 July 2025, the valuation grade for Helen of Troy Ltd. has moved from attractive to risky, indicating a significant deterioration in its valuation outlook. The company appears to be overvalued based on its P/E ratio of 3, which is substantially lower than the industry average, and an EV to EBITDA ratio of 5.87, which also suggests a premium compared to peers. Additionally, the PEG ratio stands at 0.70, further reinforcing the notion of overvaluation given the company's poor performance metrics.
In comparison to its peers, Helen of Troy Ltd. has a notably lower P/E ratio than Ethan Allen Interiors, Inc. at 28.41 and Arhaus, Inc. at 22.58, both of which are classified as attractive. The company has also underperformed significantly against the S&P 500, with a year-to-date return of -61.19% compared to the index's 12.22%. This stark contrast in performance highlights the challenges facing Helen of Troy Ltd. and supports the conclusion that it is overvalued in the current market environment.