Is The Honest Co., Inc. overvalued or undervalued?

As of 17 October 2025, The Honest Co., Inc. has moved from an attractive to an expensive valuation grade. The company is currently overvalued, as indicated by its high P/E ratio of 48, EV to EBITDA of 32.05, and Price to Book Value of 3.15. In comparison to peers, Envela Corp. shows a more favorable P/E ratio of 23.22, while PetMed Express, Inc. has a significantly higher P/E at 58.87, highlighting the relative overvaluation of The Honest Co.
The company's recent performance has been disappointing, with a year-to-date return of -47.47% compared to the S&P 500's gain of 13.30%, and a 1-year return of -3.7% against the S&P 500's 14.08%. These figures reinforce the notion that The Honest Co. is not only overvalued but also underperforming in the market.