Is Turtle Beach Corp. overvalued or undervalued?

As of 27 June 2025, the valuation grade for Turtle Beach Corp. has moved from expensive to attractive, indicating a significant shift in its perceived value. The company is currently considered undervalued. Key ratios include a P/E ratio of 14, an EV to EBITDA of 7.03, and a PEG ratio of 0.03, which suggests that the stock is trading at a low multiple relative to its growth potential.
In comparison to its peers, Turtle Beach Corp. has a lower P/E ratio than IMAX Corp., which stands at 37.68, and a more favorable EV to EBITDA ratio compared to Hamilton Beach Brands Holding Co., which is at 5.01. The company's return on capital employed (ROCE) is also strong at 18.87%, further supporting its undervaluation narrative. Notably, while Turtle Beach has underperformed the S&P 500 year-to-date with a return of -19.76%, its recent stock performance over the past month shows a positive return of 23.58%, suggesting a potential turnaround.