Is Ulta Beauty, Inc. overvalued or undervalued?

As of 28 August 2025, Ulta Beauty, Inc. has moved from a fair to attractive valuation grade, indicating a positive shift in its market perception. The company appears to be undervalued, supported by a P/E ratio of 18, an EV to EBITDA of 11.39, and a remarkable ROE of 49.09%. In comparison to peers, Ulta's P/E ratio is higher than Target Corp.'s 11.82 but lower than Tractor Supply Co.'s 32.73, suggesting a competitive position within the retail sector.
Ulta has demonstrated strong performance, with a year-to-date return of 22.96% compared to the S&P 500's 12.22%, and a one-year return of 32.80% versus the S&P 500's 17.14%. This performance reinforces the notion that Ulta is currently undervalued relative to its growth potential and market performance.