Is Sally Beauty Holdings, Inc. overvalued or undervalued?

Sep 20 2025 06:06 PM IST
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As of August 6, 2025, Sally Beauty Holdings, Inc. is considered very attractive due to its undervaluation reflected in a P/E ratio of 5, a Price to Book Value of 1.24, and an EV to EBITDA ratio of 4.26, alongside a strong year-to-date return of 48.90%, significantly outperforming the S&P 500.
As of 6 August 2025, the valuation grade for Sally Beauty Holdings, Inc. has moved from attractive to very attractive. The company appears to be undervalued, supported by a P/E ratio of 5, a Price to Book Value of 1.24, and an EV to EBITDA ratio of 4.26. In comparison to peers, Henry Schein, Inc. has a P/E of 16.00, while Patterson Cos., Inc. shows a P/E of 19.39, highlighting Sally Beauty's relative undervaluation in the retailing sector.

Furthermore, Sally Beauty has demonstrated strong returns, outperforming the S&P 500 with a year-to-date return of 48.90% compared to the index's 12.22%. This performance reinforces the notion that the stock is undervalued, especially given its compelling valuation ratios and favorable comparison to industry peers.
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