Is Tempur Sealy International, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for Tempur Sealy International, Inc. moved from very expensive to fair. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 40, a Price to Book Value of 7.15, and an EV to EBITDA of 27.67. In comparison, a peer company has a P/E ratio of 51.33, indicating that Tempur Sealy is relatively more attractively priced within its industry.
The company has demonstrated strong performance, with a year-to-date return of 54.12%, significantly outperforming the S&P 500's return of 12.26% over the same period. This positive return trend reinforces the notion that the stock is fairly valued at its current price of 87.37.