Is Tile Shop Holdings, Inc. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Tile Shop Holdings, Inc. has moved from very expensive to fair. Based on the analysis, the company appears to be fairly valued at this time. The key ratios include a P/E ratio of 202, an EV to EBITDA of 14.93, and a Price to Book Value of 2.32, which suggest that while the company is not undervalued, it is also not excessively priced compared to its recent history.
In comparison to its peers, Tile Shop Holdings has a P/E ratio of 187.70, which is slightly higher than the industry average, indicating a competitive positioning but also a premium valuation. Notably, its EV to EBITDA ratio of 13.87 among peers suggests that it is aligned with industry standards. While the stock has underperformed against the S&P 500 over the past year, it has shown significant growth over the longer term, with a 366.67% increase over the past five years, reinforcing the notion that the current valuation reflects a more stable outlook.