Is Tempur Sealy International, Inc. overvalued or undervalued?

As of 12 September 2025, the valuation grade for Tempur Sealy International, Inc. has moved from expensive to fair. The company appears fairly valued based on its current metrics. Key ratios include a P/E ratio of 40, an EV to EBITDA of 27.67, and a Price to Book Value of 7.15. In comparison to its peers, Tempur Sealy has a higher P/E ratio than the peer average of 51.33, while its EV to EBITDA is lower than the peer average of 32.17.
Additionally, the company has demonstrated strong performance with a year-to-date return of 51.72%, significantly outperforming the S&P 500's return of 12.22% during the same period. This performance reinforces the view that the stock is fairly valued in the current market.