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 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 ROCE of 69.80%. 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's stock has outperformed the S&P 500 over the past year, returning 43.52% compared to the index's 14.08%, reinforcing the attractiveness of its current valuation. Overall, the combination of strong financial ratios and favorable stock performance suggests that Ulta Beauty, Inc. is well-positioned in the retailing industry.