Is Mattel, Inc. overvalued or undervalued?

As of 25 July 2025, the valuation grade for Mattel, Inc. has moved from expensive to fair, indicating a more favorable assessment of its stock. Based on the current metrics, Mattel appears to be fairly valued. Key ratios include a P/E ratio of 14, an EV to EBITDA of 10.07, and a PEG ratio of 0.13, which suggests that the stock is reasonably priced relative to its earnings growth potential.
In comparison to peers, Mattel's P/E ratio of 13.72 is significantly lower than Hasbro, Inc.'s P/E of 32.83, highlighting a potential undervaluation relative to a competitor in the same industry. Additionally, while the industry average P/E is not provided, Mattel's PEG ratio of 0.13 is notably more attractive than Hasbro's 0.0461, suggesting better growth prospects. Despite recent underperformance, with a 1Y return of -10.76% compared to the S&P 500's 17.14%, the long-term outlook remains positive, as evidenced by a 5Y return of 48.63%.