Is Revolve Group, Inc. overvalued or undervalued?

As of 11 June 2025, the valuation grade for Revolve Group, Inc. has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently assessed as undervalued. Key ratios include a P/E ratio of 31, an EV to EBITDA of 20.43, and a PEG ratio of 0.35, which suggests that the stock is priced favorably relative to its growth potential.
In comparison to peers, Revolve Group's P/E ratio of 31 is notably higher than Petco Health & Wellness Company, Inc., which has a P/E of -14.10, and Beyond, Inc., which has a P/E of -2.01, both classified as risky. The strong ROCE of 35.71% and ROE of 11.46% further underscore the company's operational efficiency and profitability. Despite a challenging year-to-date return of -39.21% compared to the S&P 500's 2.44%, the overall valuation metrics suggest that Revolve Group, Inc. presents a compelling investment opportunity at its current price.