Is Under Armour, Inc. overvalued or undervalued?

As of 8 August 2024, Under Armour, Inc. has moved from an expensive to a risky valuation grade. The company appears to be overvalued at its current price of $6.87, especially when compared to its peers. Key ratios include a P/E ratio of 21, an EV to EBITDA of 9.37, and a Price to Book Value of 1.47, which suggest that the stock is not priced favorably relative to its earnings and book value.
In comparison to peers, Kontoor Brands, Inc. has a P/E of 14.14 and an EV to EBITDA of 10.09, while Columbia Sportswear Co. shows a P/E of 14.87 and an EV to EBITDA of 8.40. These figures indicate that Under Armour's valuation is significantly higher than these competitors, reinforcing the notion that it is overvalued. Additionally, the company's stock has underperformed against the S&P 500 over various time frames, including a year-to-date decline of 17.03% compared to a 2.44% gain for the index, further supporting the conclusion of overvaluation.