Is Thor Industries, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Thor Industries, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued based on its P/E ratio of 25, which is notably higher than peers like Mattel, Inc. with a P/E of 13.72 and Acushnet Holdings Corp. at 19.99. Additionally, Thor's EV to EBITDA stands at 10.06, which also exceeds the industry average, further supporting the overvaluation assessment.
In comparison to the S&P 500, Thor Industries has underperformed in multiple periods, with a 1-year return of -0.95% versus the S&P 500's 17.14%, and a 3-year return of 38.00% compared to 70.41% for the index. This trend reinforces the notion that the stock may not be a favorable investment at its current price level.