Is HNI Corp. overvalued or undervalued?

As of 11 August 2025, HNI Corp. has moved from an expensive to a fair valuation grade. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 15, an EV to EBITDA of 7.96, and a Price to Book Value of 2.71. In comparison to peers, MasterBrand, Inc. has a P/E of 15.79, while La-Z-Boy, Inc. shows a more attractive P/E of 14.25, indicating that HNI Corp. is competitively positioned within its industry.
Despite its fair valuation, HNI Corp. has underperformed against the S&P 500 over various periods, with a year-to-date return of -8.95% compared to the S&P 500's 12.22%. This trend continues over the one-year period, where HNI Corp. returned -13.50% against the S&P 500's 17.14%, suggesting that while the stock is fairly valued, it may face challenges in the near term.