Is Ulta Beauty, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Ulta Beauty, Inc. moved from fair to attractive, indicating a positive shift in its valuation outlook. The company is currently considered undervalued based on several key metrics, including a P/E ratio of 18, an EV to EBITDA ratio of 11.39, and a remarkable ROCE of 69.80%. In comparison, Target Corp. has a P/E of 11.82, while Tractor Supply Co. is deemed expensive with a P/E of 32.73, highlighting Ulta's relative attractiveness in the retail sector.
Despite a recent decline in stock price, Ulta Beauty has outperformed the S&P 500 on a year-to-date basis with a return of 22.67% compared to the S&P's 13.30%. Over the past year, the company's stock has surged by 43.52%, further reinforcing its strong market position relative to broader market performance.