Is Xponential Fitness, Inc. overvalued or undervalued?

As of 5 October 2023, Xponential Fitness, Inc. has moved from fair to attractive in its grade change. The company appears to be undervalued based on its current financial metrics. Key ratios include a Price-to-Earnings (P/E) ratio of 18.5, a Price-to-Sales (P/S) ratio of 3.2, and a Return on Equity (ROE) of 12%.
When compared to peers, Planet Fitness has a P/E ratio of 25.4, while Life Time, Inc. shows a P/S ratio of 4.5. This suggests that Xponential Fitness is trading at a discount relative to its competitors. Additionally, the recent stock performance has outpaced the Sensex, reinforcing the notion of its undervaluation.