Is Valvoline, Inc. overvalued or undervalued?

As of 16 June 2025, the valuation grade for Valvoline, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a P/E ratio of 17, a Price to Book Value of 18.73, and an EV to EBITDA ratio of 13.31. Compared to its peer, Life Time Group Holdings, Inc., which has a significantly higher P/E ratio of 26.98, Valvoline appears more reasonably priced, although it still lags behind in growth metrics.
In terms of performance, Valvoline's ROE stands at an impressive 108.47%, reflecting strong profitability, while its PEG ratio of 0.68 suggests that it may still have growth potential relative to its earnings. Despite a recent one-year stock return of -11.41% compared to the S&P 500's 10.26%, Valvoline's solid fundamentals indicate that it is currently fairly valued in the market.