Is Olaplex Holdings, Inc. overvalued or undervalued?

As of 10 June 2025, the valuation grade for Olaplex Holdings, Inc. has moved from attractive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a P/E ratio of 71, an EV to EBITDA of 8.63, and a ROCE of 5.89%. Comparatively, its peer, which has a valuation of attractive, shows a P/E of 76.7 and an EV to EBITDA of 9.24, suggesting that Olaplex is trading at a premium despite its lower performance metrics.
The stock has underperformed relative to the S&P 500 over the past year, with a return of -14.29% compared to the index's 10.26%. This underperformance, combined with the high valuation ratios, reinforces the conclusion that Olaplex Holdings, Inc. is currently overvalued in the market.