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

As of 17 October 2025, the valuation grade for The Honest Co., Inc. has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its high P/E ratio of 48, a Price to Book Value of 3.15, and an EV to EBITDA ratio of 32.05, which significantly exceeds the industry benchmarks. In comparison, Envela Corp., which is considered very attractive, has a P/E of 23.22, while PetMed Express, Inc. shows a higher P/E of 58.87 but is classified as attractive.
Additionally, The Honest Co., Inc. has underperformed against the S&P 500, with a year-to-date return of -47.47% compared to the index's 13.30%. This stark contrast in returns further reinforces the notion that the stock may be overvalued at its current price of 3.64.