Is Marriott Vacations Worldwide Corp. overvalued or undervalued?

As of 4 August 2025, the valuation grade for Marriott Vacations Worldwide Corp. has moved from attractive to very attractive. The company appears undervalued based on its current metrics. Key ratios include a P/E ratio of 16, an EV to EBITDA of 5.66, and a Price to Book Value of 1.83, which are favorable compared to its peers. For instance, Service Corp. International has a higher P/E of 21.11, while H&R Block, Inc. shows an EV to EBITDA of 9.65, indicating that Marriott Vacations is trading at a discount relative to these competitors.
In terms of performance, Marriott Vacations has underperformed the S&P 500 across multiple time frames, with a year-to-date return of -13.85% compared to the S&P 500's 12.22%. Despite this, the company's strong ROCE of 28.39% and a high dividend yield of 128.41% suggest robust operational efficiency and shareholder returns, reinforcing the notion that it is undervalued in the current market.