Is Marriott Vacations Worldwide Corp. overvalued or undervalued?

As of 9 April 2025, the valuation grade for Marriott Vacations Worldwide Corp. has moved from fair to attractive, indicating a more favorable assessment of its value. The company is currently considered undervalued. Key ratios include a P/E ratio of 16, an EV to EBITDA of 5.66, and a PEG ratio of 1.90, which suggest that the stock is trading at a reasonable valuation compared to its earnings growth potential.
In comparison with peers, Marriott Vacations' P/E ratio of 16.38 is significantly lower than Rollins, Inc., which has a P/E of 57.29, indicating that Marriott is more attractively priced. Service Corp. International, another peer, has a higher P/E of 21.34 but also shows a more favorable EV to EBITDA of 12.70. Despite recent underperformance relative to the S&P 500, with a year-to-date return of -22.17% compared to the index's 2.44%, the current valuation metrics suggest that Marriott Vacations Worldwide Corp. presents a compelling investment opportunity.