Is Ulta Beauty, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Ulta Beauty, Inc. has moved from fair to attractive, indicating a positive shift in its perceived value. 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, Target Corp. has a P/E of 11.82, while Tractor Supply Co. is considered expensive with a P/E of 32.73.
Ulta Beauty's recent stock performance shows a year-to-date return of 22.67%, significantly outperforming the S&P 500's 13.30% during the same period, reinforcing the notion that the stock is undervalued relative to its growth potential.