Is Mastercraft Boat Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Mastercraft Boat Holdings, Inc. has moved from fair to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued, with a P/E ratio of 40, which is notably higher than its peers such as Malibu Boats, Inc. at 41.72 and Marine Products Corp. at 27.02. Additionally, the EV to EBITDA ratio stands at 16.95, and the Price to Book Value is 1.63, both of which suggest that the stock may not be justified at its current price level.
In terms of performance, Mastercraft has shown mixed returns compared to the S&P 500, with a 1-year return of 18.67% versus the S&P 500's 14.08%, but significantly lagging over longer periods, such as a 3-year return of 0.73% compared to 81.19% for the index. This disparity reinforces the notion that while the company may have performed well recently, its overall valuation metrics indicate that it is currently overvalued relative to its peers and the broader market.