Is Polaris Inc. overvalued or undervalued?

As of 29 April 2025, Polaris Inc. has moved from a valuation grade of very expensive to very attractive, indicating a significant shift in its perceived value. The company is currently considered undervalued. Key ratios include a P/E ratio of 34, an EV to EBITDA of 9.33, and a Price to Book Value of 1.88, which suggest that the stock may be undervalued compared to its earnings and asset base.
In comparison to its peers, Polaris Inc. has a P/E ratio of 33.33, which is notably higher than Acushnet Holdings Corp. at 18.51 and Hayward Holdings, Inc. at 22.84, both of which are classified as expensive. Additionally, Polaris's EV to EBITDA ratio of 9.33 is more favorable than Acushnet's 14.65, reinforcing the notion of its attractive valuation. Despite recent underperformance relative to the S&P 500, with a year-to-date return of -29.87% compared to the index's 2.44%, the current valuation metrics suggest that Polaris Inc. presents a compelling investment opportunity.