Is OneSpaWorld Holdings Ltd. overvalued or undervalued?

As of 17 October 2025, the valuation grade for OneSpaWorld Holdings Ltd. has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its P/E ratio of 29, which is higher than the industry average, and an EV to EBITDA ratio of 20.26, which also suggests a premium valuation compared to peers like Stride, Inc. with a P/E of 23.77 and Adtalem Global Education, Inc. at 39.20. Additionally, the PEG ratio of 0.64 indicates that the stock may not be justified at its current price given its growth prospects.
In terms of recent performance, OneSpaWorld has underperformed the S&P 500 over the past week and month, with returns of -1.08% and -8.22%, respectively, while the S&P 500 gained 1.70% and 0.96%. However, over the longer term, the company has outperformed the S&P 500 significantly over three and five years, with returns of 142.17% and 185.51%, respectively, compared to 81.19% and 91.29% for the index. This mixed performance further complicates the valuation narrative, reinforcing the notion that the stock may be overvalued at its current price.