Is Urban Outfitters, Inc. overvalued or undervalued?

As of 12 September 2025, the valuation grade for Urban Outfitters, Inc. moved from attractive to very attractive. The company appears to be undervalued based on its strong financial metrics. Key ratios include a P/E ratio of 14, an EV to EBITDA of 9.25, and a PEG ratio of 0.32, indicating that the stock is trading at a discount relative to its growth potential.
In comparison to its peers, Urban Outfitters has a lower P/E ratio than Abercrombie & Fitch Co. at 15.96 and a more favorable PEG ratio than Gap, Inc. at 0.73. The company's return performance has been impressive, with a 1-year return of 90.17% compared to the S&P 500's 17.14%, reinforcing the narrative that it is undervalued relative to its growth prospects.