Is Peloton Interactive, Inc. overvalued or undervalued?

Jun 25 2025 08:50 AM IST
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As of August 26, 2021, Peloton Interactive, Inc. is considered overvalued with a risky valuation grade, reflected in its negative P/E ratio of -18.45, high EV to EBITDA of 61.67, and poor stock performance, significantly lagging behind the S&P 500.
As of 26 August 2021, Peloton Interactive, Inc. has moved from an expensive to a risky valuation grade. The company is currently considered overvalued based on its financial metrics. Key ratios include a Price to Book Value of -5.92, an EV to EBITDA of 61.67, and a ROCE of -22.44%.

In comparison to its peers, Peloton's P/E ratio is significantly negative at -18.45, while Stride, Inc. and Life Time Group Holdings, Inc. have attractive valuations with P/E ratios of 23.49 and 26.98, respectively. Additionally, Peloton's EV to Sales ratio of 1.41 is higher than the industry average, indicating potential overvaluation. The company's recent stock performance has also lagged behind the S&P 500, with a year-to-date return of -26.78% compared to the index's 2.44%.
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