Is Polaris Inc. overvalued or undervalued?

As of 29 July 2025, the valuation grade for Polaris Inc. has moved from very attractive to risky, indicating a shift in market perception. The company appears to be overvalued, given its high P/E ratio of 34 compared to peers like Hasbro, Inc. at 32.83 and Mattel, Inc. at 13.72, alongside an EV to EBITDA of 28.85, which is significantly higher than Mattel's 10.23. Additionally, the EV to Sales ratio of 0.59 suggests that the company's sales are not being valued favorably in comparison to its peers.
Polaris Inc. has underperformed against the S&P 500 over multiple periods, with a one-year return of -31.65% compared to the S&P 500's 17.14%, and a three-year return of -47.08% against the S&P 500's 70.41%. This underperformance reinforces the notion that the stock is currently overvalued in relation to its financial metrics and market performance.