On August 24, 2026, e.l.f. Beauty Inc ELF shares rose 3.9%, bringing the current price to $105.95. The stock has seen significant movement, with a 52-week range between $48.82 and $150.99.
- GF Valueâ„¢ verdict: $169.17 indicates that the stock is 37.4% undervalued.
- GF Scoreâ„¢ of 88/100 suggests a strong overall rating.
- Notable signal: Despite the strong GF Scoreâ„¢, insider activity shows a net selling of $80.3M over the past year.
Is ELF Overvalued or Undervalued?
The current price of e.l.f. Beauty Inc ELF at $105.95 presents a compelling valuation question when compared to the GF Valueâ„¢ estimate of $169.17. This gap indicates that the stock is currently undervalued by 37.4%, offering a potential margin of safety for prospective investors. The GF Valuation label identifies the stock as significantly undervalued, suggesting that the current market price does not reflect the company's underlying value based on historical trading multiples, past business growth, and future performance estimates.
Though the stock's current valuation appears attractive, it is crucial to consider the volatility in its historical performance, particularly given that the stock has experienced a 10.3% decline over the past year. This raises some concerns about the sustainability of the current price appreciation and the possible risks involved. However, the significant difference between the current price and GF Valueâ„¢ could represent a substantial opportunity, provided the company continues to perform well in the competitive beauty market.
How Does ELF's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 108.1x | 71.2x |
| Forward P/E | 29.8x | N/A |
The current P/E (TTM) of 108.1x is significantly above its 5-year median of 71.2x, indicating that the stock is trading at a premium relative to its historical valuations. This elevated P/E ratio aligns with the GF Valueâ„¢ verdict of being undervalued, suggesting that while the stock is currently priced higher than its historical averages, the potential for future growth and profitability may justify this premium. Nevertheless, investors should carefully weigh these factors against the backdrop of market conditions and company performance.
What Does ELF's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ combines various factors to assess a company's overall financial health and growth potential. e.l.f. Beauty Inc's score of 88/100 highlights its strong positioning, particularly in growth and profitability, with respective sub-ranks of 10/10 and 8/10. However, the valuation rank is relatively weak at 4/10, indicating that while the company has strong growth prospects, its current price may not reflect its intrinsic value.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 88 |
| Financial Strength | 6/10 |
| Profitability | 8/10 |
| Growth | 10/10 |
| Valuation | 4/10 |
| Momentum | 7/10 |
Overall, the strong growth and profitability scores reflect e.l.f. Beauty Inc's robust business model and competitive advantages in the beauty sector. However, the lower valuation rank suggests caution, as it may indicate that the stock is currently priced higher than its fundamental value. Investors should consider these mixed signals when evaluating their investment strategy.
What Are Gurus and Insiders Doing with ELF?
Currently, five gurus hold e.l.f. Beauty Inc ELF stock, with three adding to their positions and five trimming their holdings in recent quarters. This mixed activity from gurus indicates varying levels of confidence in the company's prospects among institutional investors.
In the past 12 months, insider activity reveals that insiders bought $0.5M worth of shares while selling $80.8M, leading to a net selling of $80.3M. This trend raises potential concerns about insider sentiment, suggesting that those closest to the company may not be optimistic about its short-term outlook. Such signals can be crucial for investors as they gauge the company's future performance and market sentiment.
What This Means for Investors
Based on the GF Valueâ„¢ assessment, e.l.f. Beauty Inc ELF is currently undervalued, presenting a potential opportunity for investors. However, the significant insider selling and higher-than-historical P/E ratios may warrant caution. Investors should closely monitor the company's performance and market conditions to make informed decisions moving forward.
For more detailed insights, visit the e.l.f. Beauty Inc ELF stock page and explore the GF Valueâ„¢ page for additional information.
Frequently Asked Questions
What is ELF's GF Scoreâ„¢?
The GF Scoreâ„¢ for e.l.f. Beauty Inc is 88/100, indicating a strong overall rating based on various financial metrics.
Is ELF overvalued or undervalued?
e.l.f. Beauty Inc is currently undervalued according to GF Valueâ„¢, which estimates fair value at $169.17 compared to the current price of $105.95.
What is ELF's P/E ratio?
The P/E ratio for e.l.f. Beauty Inc is 108.1x, which is significantly above its 5-year median of 71.2x, indicating a premium valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
